Correlation Between Gansu Huangtai and Fujian Newland
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Fujian Newland Computer, you can compare the effects of market volatilities on Gansu Huangtai and Fujian Newland 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 Gansu Huangtai with a short position of Fujian Newland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Fujian Newland.
Diversification Opportunities for Gansu Huangtai and Fujian Newland
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Fujian is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Fujian Newland Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Newland Computer and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Fujian Newland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Newland Computer has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Fujian Newland go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Fujian Newland
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 2.27 times more return on investment than Fujian Newland. However, Gansu Huangtai is 2.27 times more volatile than Fujian Newland Computer. It trades about -0.04 of its potential returns per unit of risk. Fujian Newland Computer is currently generating about -0.21 per unit of risk. If you would invest 1,734 in Gansu Huangtai Wine marketing on October 16, 2024 and sell it today you would lose (123.00) from holding Gansu Huangtai Wine marketing or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Fujian Newland Computer
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Fujian Newland Computer |
Gansu Huangtai and Fujian Newland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Fujian Newland
The main advantage of trading using opposite Gansu Huangtai and Fujian Newland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Fujian Newland 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 Fujian Newland will offset losses from the drop in Fujian Newland's long position.| Gansu Huangtai vs. Hubei Forbon Technology | Gansu Huangtai vs. Hongrun Construction Group | Gansu Huangtai vs. Allied Machinery Co | Gansu Huangtai vs. Peoples Insurance of |
| Fujian Newland vs. Shanghai V Test Semiconductor | Fujian Newland vs. GRINM Semiconductor Materials | Fujian Newland vs. Southchip Semiconductor Technology | Fujian Newland vs. Giantec Semiconductor Corp |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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