Correlation Between FSPG Hi and Guangdong Advertising
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By analyzing existing cross correlation between FSPG Hi Tech Co and Guangdong Advertising Co, you can compare the effects of market volatilities on FSPG Hi and Guangdong Advertising 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 FSPG Hi with a short position of Guangdong Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of FSPG Hi and Guangdong Advertising.
Diversification Opportunities for FSPG Hi and Guangdong Advertising
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FSPG and Guangdong is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding FSPG Hi Tech Co and Guangdong Advertising Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Advertising and FSPG Hi 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 FSPG Hi Tech Co are associated (or correlated) with Guangdong Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Advertising has no effect on the direction of FSPG Hi i.e., FSPG Hi and Guangdong Advertising go up and down completely randomly.
Pair Corralation between FSPG Hi and Guangdong Advertising
Assuming the 90 days trading horizon FSPG Hi is expected to generate 1.36 times less return on investment than Guangdong Advertising. In addition to that, FSPG Hi is 1.06 times more volatile than Guangdong Advertising Co. It trades about 0.18 of its total potential returns per unit of risk. Guangdong Advertising Co is currently generating about 0.26 per unit of volatility. If you would invest 625.00 in Guangdong Advertising Co on September 3, 2024 and sell it today you would earn a total of 231.00 from holding Guangdong Advertising Co or generate 36.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
FSPG Hi Tech Co vs. Guangdong Advertising Co
Performance |
| Timeline |
| FSPG Hi Tech |
| Guangdong Advertising |
FSPG Hi and Guangdong Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FSPG Hi and Guangdong Advertising
The main advantage of trading using opposite FSPG Hi and Guangdong Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FSPG Hi position performs unexpectedly, Guangdong Advertising 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 Advertising will offset losses from the drop in Guangdong Advertising's long position.| FSPG Hi vs. Zijin Mining Group | FSPG Hi vs. Baoshan Iron Steel | FSPG Hi vs. Rongsheng Petrochemical Co | FSPG Hi vs. Hoshine Silicon Ind |
| Guangdong Advertising vs. Guocheng Mining Co | Guangdong Advertising vs. Guangzhou Haige Communications | Guangdong Advertising vs. FSPG Hi Tech Co | Guangdong Advertising vs. Sunwave Communications 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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