Correlation Between Gansu Huangtai and Shenyang Blue
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Shenyang Blue Silver, you can compare the effects of market volatilities on Gansu Huangtai and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Shenyang Blue.
Diversification Opportunities for Gansu Huangtai and Shenyang Blue
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Shenyang is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Shenyang Blue go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Shenyang Blue
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.88 times more return on investment than Shenyang Blue. However, Gansu Huangtai is 1.88 times more volatile than Shenyang Blue Silver. It trades about 0.01 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.19 per unit of risk. If you would invest 1,500 in Gansu Huangtai Wine marketing on October 30, 2024 and sell it today you would lose (24.00) from holding Gansu Huangtai Wine marketing or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Shenyang Blue Silver
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Shenyang Blue Silver |
Gansu Huangtai and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Shenyang Blue
The main advantage of trading using opposite Gansu Huangtai and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue's long position.| Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Petroleum Chemical | Gansu Huangtai vs. China Construction Bank |
| Shenyang Blue vs. Anhui Transport Consulting | Shenyang Blue vs. Silkroad Visual Technology | Shenyang Blue vs. Dazhong Transportation Group | Shenyang Blue vs. Shanghai Broadband Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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