Correlation Between Gansu Huangtai and Guangdong Skychem
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Guangdong Skychem Technology, you can compare the effects of market volatilities on Gansu Huangtai and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Guangdong Skychem.
Diversification Opportunities for Gansu Huangtai and Guangdong Skychem
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gansu and Guangdong is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Guangdong Skychem
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.33 times more return on investment than Guangdong Skychem. However, Gansu Huangtai is 1.33 times more volatile than Guangdong Skychem Technology. It trades about 0.01 of its potential returns per unit of risk. Guangdong Skychem Technology is currently generating about -0.11 per unit of risk. If you would invest 1,524 in Gansu Huangtai Wine marketing on November 1, 2024 and sell it today you would lose (48.00) from holding Gansu Huangtai Wine marketing or give up 3.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Guangdong Skychem |
Gansu Huangtai and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Guangdong Skychem
The main advantage of trading using opposite Gansu Huangtai and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem's long position.| Gansu Huangtai vs. Queclink Wireless Solutions | Gansu Huangtai vs. GigaDevice SemiconductorBeiji | Gansu Huangtai vs. Shannon Semiconductor Technology | Gansu Huangtai vs. Jiangnan Mould Plastic |
| Guangdong Skychem vs. China World Trade | Guangdong Skychem vs. Fujian Anjoy Foods | Guangdong Skychem vs. Shanghai Ziyan Foods | Guangdong Skychem vs. Shenyang Chemical Industry |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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