Correlation Between Gansu Huangtai and China Marine
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and China Marine Information, you can compare the effects of market volatilities on Gansu Huangtai and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and China Marine.
Diversification Opportunities for Gansu Huangtai and China Marine
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gansu and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and China Marine go up and down completely randomly.
Pair Corralation between Gansu Huangtai and China Marine
Assuming the 90 days trading horizon Gansu Huangtai is expected to generate 1.56 times less return on investment than China Marine. In addition to that, Gansu Huangtai is 1.27 times more volatile than China Marine Information. It trades about 0.01 of its total potential returns per unit of risk. China Marine Information is currently generating about 0.02 per unit of volatility. If you would invest 2,641 in China Marine Information on September 1, 2024 and sell it today you would earn a total of 48.00 from holding China Marine Information or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. China Marine Information
Performance |
| Timeline |
| Gansu Huangtai Wine |
| China Marine Information |
Gansu Huangtai and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and China Marine
The main advantage of trading using opposite Gansu Huangtai and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine's long position.| Gansu Huangtai vs. Shandong Polymer Biochemicals | Gansu Huangtai vs. Ningxia Younglight Chemicals | Gansu Huangtai vs. Huatian Hotel Group | Gansu Huangtai vs. Xiandai Investment Co |
| China Marine vs. Ming Yang Smart | China Marine vs. 159681 | China Marine vs. 159005 | China Marine vs. Loctek Ergonomic 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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