Correlation Between Advanced Technology and Guangdong Silvere
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By analyzing existing cross correlation between Advanced Technology Materials and Guangdong Silvere Sci, you can compare the effects of market volatilities on Advanced Technology 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 Advanced Technology with a short position of Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Guangdong Silvere.
Diversification Opportunities for Advanced Technology and Guangdong Silvere
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advanced and Guangdong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials 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 Advanced Technology 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 Advanced Technology Materials 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 Advanced Technology i.e., Advanced Technology and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Advanced Technology and Guangdong Silvere
Assuming the 90 days trading horizon Advanced Technology Materials is expected to generate 0.78 times more return on investment than Guangdong Silvere. However, Advanced Technology Materials is 1.29 times less risky than Guangdong Silvere. It trades about 0.08 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.03 per unit of risk. If you would invest 891.00 in Advanced Technology Materials on November 24, 2024 and sell it today you would earn a total of 345.00 from holding Advanced Technology Materials or generate 38.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Advanced Technology Materials vs. Guangdong Silvere Sci
Performance |
Timeline |
Advanced Technology |
Guangdong Silvere Sci |
Advanced Technology and Guangdong Silvere Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advanced Technology and Guangdong Silvere
The main advantage of trading using opposite Advanced Technology and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology 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.Advanced Technology vs. Shanghai Shuixing Home | ||
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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