Correlation Between Gansu Huangtai and Sunny Loan
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Sunny Loan Top, you can compare the effects of market volatilities on Gansu Huangtai and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Sunny Loan.
Diversification Opportunities for Gansu Huangtai and Sunny Loan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gansu and Sunny is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Sunny Loan go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Sunny Loan
Assuming the 90 days trading horizon Gansu Huangtai is expected to generate 3.4 times less return on investment than Sunny Loan. In addition to that, Gansu Huangtai is 1.03 times more volatile than Sunny Loan Top. It trades about 0.02 of its total potential returns per unit of risk. Sunny Loan Top is currently generating about 0.05 per unit of volatility. If you would invest 619.00 in Sunny Loan Top on September 26, 2024 and sell it today you would earn a total of 475.00 from holding Sunny Loan Top or generate 76.74% 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. Sunny Loan Top
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Sunny Loan Top |
Gansu Huangtai and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Sunny Loan
The main advantage of trading using opposite Gansu Huangtai and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Gansu Huangtai vs. PetroChina Co Ltd | Gansu Huangtai vs. China Mobile Limited | Gansu Huangtai vs. CNOOC Limited | Gansu Huangtai vs. Ping An Insurance |
| Sunny Loan vs. China World Trade | Sunny Loan vs. Ningbo Fangzheng Automobile | Sunny Loan vs. Ping An Insurance | Sunny Loan 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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