Correlation Between Sinosteel Engineering and Guangdong Silvere
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By analyzing existing cross correlation between Sinosteel Engineering and and Guangdong Silvere Sci, you can compare the effects of market volatilities on Sinosteel Engineering and Guangdong Silvere and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sinosteel Engineering with a short position of Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Guangdong Silvere.
Diversification Opportunities for Sinosteel Engineering and Guangdong Silvere
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci and Sinosteel Engineering is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sinosteel Engineering and are associated (or correlated) with Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Guangdong Silvere
Assuming the 90 days trading horizon Sinosteel Engineering is expected to generate 1.41 times less return on investment than Guangdong Silvere. But when comparing it to its historical volatility, Sinosteel Engineering and is 1.31 times less risky than Guangdong Silvere. It trades about 0.18 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 617.00 in Guangdong Silvere Sci on September 5, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Silvere Sci or generate 11.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sinosteel Engineering and vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Sinosteel Engineering and |
| Guangdong Silvere Sci |
Sinosteel Engineering and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Guangdong Silvere
The main advantage of trading using opposite Sinosteel Engineering and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Guangdong Silvere can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Sinosteel Engineering vs. China Life Insurance | Sinosteel Engineering vs. Cinda Securities Co | Sinosteel Engineering vs. Piotech Inc A | Sinosteel Engineering vs. Dongxing Sec Co |
| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Rongsheng Petrochemical Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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