Correlation Between Sinosteel Engineering and Guangdong Brandmax
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sinosteel Engineering and and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Sinosteel Engineering and Guangdong Brandmax 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 Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinosteel Engineering and Guangdong Brandmax.
Diversification Opportunities for Sinosteel Engineering and Guangdong Brandmax
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sinosteel and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sinosteel Engineering and and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Sinosteel Engineering i.e., Sinosteel Engineering and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Sinosteel Engineering and Guangdong Brandmax
Assuming the 90 days trading horizon Sinosteel Engineering is expected to generate 1.44 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Sinosteel Engineering and is 1.86 times less risky than Guangdong Brandmax. It trades about 0.12 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 891.00 in Guangdong Brandmax Marketing on August 28, 2024 and sell it today you would earn a total of 58.00 from holding Guangdong Brandmax Marketing or generate 6.51% 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 Brandmax Marketing
Performance |
| Timeline |
| Sinosteel Engineering and |
| Guangdong Brandmax |
Sinosteel Engineering and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinosteel Engineering and Guangdong Brandmax
The main advantage of trading using opposite Sinosteel Engineering and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinosteel Engineering position performs unexpectedly, Guangdong Brandmax 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 Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic Technology |
| Guangdong Brandmax vs. Industrial and Commercial | Guangdong Brandmax vs. Agricultural Bank of | Guangdong Brandmax vs. China Construction Bank | Guangdong Brandmax vs. Bank of China |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |