Correlation Between Gansu Huangtai and Cangzhou Mingzhu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Gansu Huangtai and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Cangzhou Mingzhu.
Diversification Opportunities for Gansu Huangtai and Cangzhou Mingzhu
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gansu and Cangzhou is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Cangzhou Mingzhu
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 3.12 times more return on investment than Cangzhou Mingzhu. However, Gansu Huangtai is 3.12 times more volatile than Cangzhou Mingzhu Plastic. It trades about 0.05 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.26 per unit of risk. If you would invest 1,537 in Gansu Huangtai Wine marketing on October 28, 2024 and sell it today you would earn a total of 37.00 from holding Gansu Huangtai Wine marketing or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Cangzhou Mingzhu Plastic |
Gansu Huangtai and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Cangzhou Mingzhu
The main advantage of trading using opposite Gansu Huangtai and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Gansu Huangtai vs. Tangel Publishing | Gansu Huangtai vs. Heilongjiang Publishing Media | Gansu Huangtai vs. Youyou Foods Co | Gansu Huangtai vs. Xinhua Winshare Publishing |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |