Correlation Between Gansu Huangtai and Tonghua Grape
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Tonghua Grape Wine, you can compare the effects of market volatilities on Gansu Huangtai and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Tonghua Grape.
Diversification Opportunities for Gansu Huangtai and Tonghua Grape
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gansu and Tonghua is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Tonghua Grape go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Tonghua Grape
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 2.22 times more return on investment than Tonghua Grape. However, Gansu Huangtai is 2.22 times more volatile than Tonghua Grape Wine. It trades about -0.02 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.31 per unit of risk. If you would invest 1,723 in Gansu Huangtai Wine marketing on October 23, 2024 and sell it today you would lose (76.00) from holding Gansu Huangtai Wine marketing or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Tonghua Grape Wine
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Tonghua Grape Wine |
Gansu Huangtai and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Tonghua Grape
The main advantage of trading using opposite Gansu Huangtai and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape's long position.| Gansu Huangtai vs. Shenyang Blue Silver | Gansu Huangtai vs. Pengxin International Mining | Gansu Huangtai vs. Konfoong Materials International | Gansu Huangtai vs. Shenzhen Silver Basis |
| Tonghua Grape vs. Heilongjiang Transport Development | Tonghua Grape vs. Sichuan Fulin Transportation | Tonghua Grape vs. Nanjing OLO Home | Tonghua Grape vs. Gansu Huangtai Wine marketing |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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