Correlation Between Gansu Huangtai and Caihong Display
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Caihong Display Devices, you can compare the effects of market volatilities on Gansu Huangtai and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Caihong Display.
Diversification Opportunities for Gansu Huangtai and Caihong Display
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Caihong is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Caihong Display go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Caihong Display
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.71 times more return on investment than Caihong Display. However, Gansu Huangtai is 1.71 times more volatile than Caihong Display Devices. It trades about 0.17 of its potential returns per unit of risk. Caihong Display Devices is currently generating about 0.15 per unit of risk. If you would invest 926.00 in Gansu Huangtai Wine marketing on October 18, 2024 and sell it today you would earn a total of 745.00 from holding Gansu Huangtai Wine marketing or generate 80.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Caihong Display Devices
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Caihong Display Devices |
Gansu Huangtai and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Caihong Display
The main advantage of trading using opposite Gansu Huangtai and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display'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 |
| Caihong Display vs. Kangping Technology Co | Caihong Display vs. Gansu Huangtai Wine marketing | Caihong Display vs. Xinxiang Chemical Fiber | Caihong Display vs. Hengli Petrochemical Co |
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.
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