Correlation Between Gansu Huangtai and Beijing Watertek
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Beijing Watertek Information, you can compare the effects of market volatilities on Gansu Huangtai and Beijing Watertek 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 Beijing Watertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Beijing Watertek.
Diversification Opportunities for Gansu Huangtai and Beijing Watertek
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gansu and Beijing is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Beijing Watertek Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Watertek Inf 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 Beijing Watertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Watertek Inf has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Beijing Watertek go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Beijing Watertek
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.33 times more return on investment than Beijing Watertek. However, Gansu Huangtai is 1.33 times more volatile than Beijing Watertek Information. It trades about -0.01 of its potential returns per unit of risk. Beijing Watertek Information is currently generating about -0.18 per unit of risk. If you would invest 1,739 in Gansu Huangtai Wine marketing on October 18, 2024 and sell it today you would lose (68.00) from holding Gansu Huangtai Wine marketing or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Beijing Watertek Information
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Beijing Watertek Inf |
Gansu Huangtai and Beijing Watertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Beijing Watertek
The main advantage of trading using opposite Gansu Huangtai and Beijing Watertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Beijing Watertek 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 Beijing Watertek will offset losses from the drop in Beijing Watertek's long position.| Gansu Huangtai vs. Runjian Communication Co | Gansu Huangtai vs. Dongfeng Automobile Co | Gansu Huangtai vs. Suzhou Mingzhi Technology | Gansu Huangtai vs. Songz Automobile Air |
| Beijing Watertek vs. Invengo Information Technology | Beijing Watertek vs. HaiXin Foods Co | Beijing Watertek vs. AVCON Information Tech | Beijing Watertek vs. Fujian Anjoy Foods |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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