Correlation Between Gansu Huangtai and Suzhou Fushilai
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Suzhou Fushilai Pharmaceutical, you can compare the effects of market volatilities on Gansu Huangtai and Suzhou Fushilai 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 Suzhou Fushilai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Suzhou Fushilai.
Diversification Opportunities for Gansu Huangtai and Suzhou Fushilai
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gansu and Suzhou is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Suzhou Fushilai Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Fushilai Phar 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 Suzhou Fushilai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Fushilai Phar has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Suzhou Fushilai go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Suzhou Fushilai
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 2.6 times more return on investment than Suzhou Fushilai. However, Gansu Huangtai is 2.6 times more volatile than Suzhou Fushilai Pharmaceutical. It trades about -0.01 of its potential returns per unit of risk. Suzhou Fushilai Pharmaceutical is currently generating about -0.2 per unit of risk. If you would invest 1,674 in Gansu Huangtai Wine marketing on October 25, 2024 and sell it today you would lose (63.00) from holding Gansu Huangtai Wine marketing or give up 3.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Suzhou Fushilai Pharmaceutical
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Suzhou Fushilai Phar |
Gansu Huangtai and Suzhou Fushilai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Suzhou Fushilai
The main advantage of trading using opposite Gansu Huangtai and Suzhou Fushilai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Suzhou Fushilai 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 Suzhou Fushilai will offset losses from the drop in Suzhou Fushilai's long position.| Gansu Huangtai vs. Agricultural Bank of | Gansu Huangtai vs. Postal Savings Bank | Gansu Huangtai vs. Bank of Communications | Gansu Huangtai vs. China Merchants Bank |
| Suzhou Fushilai vs. Xiangyang Automobile Bearing | Suzhou Fushilai vs. CareRay Digital Medical | Suzhou Fushilai vs. Fiberhome Telecommunication Technologies | Suzhou Fushilai vs. Zhongzhu Medical Holdings |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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