Correlation Between Shaanxi Meineng and Gansu Huangtai
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Shaanxi Meineng and Gansu Huangtai 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 Shaanxi Meineng with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Gansu Huangtai.
Diversification Opportunities for Shaanxi Meineng and Gansu Huangtai
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Gansu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Gansu Huangtai
Assuming the 90 days trading horizon Shaanxi Meineng is expected to generate 1.57 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, Shaanxi Meineng Clean is 1.83 times less risky than Gansu Huangtai. It trades about 0.13 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,268 in Gansu Huangtai Wine marketing on August 24, 2024 and sell it today you would earn a total of 116.00 from holding Gansu Huangtai Wine marketing or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Gansu Huangtai Wine |
Shaanxi Meineng and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Gansu Huangtai
The main advantage of trading using opposite Shaanxi Meineng and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Shaanxi Meineng vs. Minmetals Capital Co | Shaanxi Meineng vs. Zhejiang Yayi Metal | Shaanxi Meineng vs. Qtone Education Group | Shaanxi Meineng vs. Chinese Universe Publishing |
| Gansu Huangtai vs. Grinm Advanced Materials | Gansu Huangtai vs. Xinke Material | Gansu Huangtai vs. Jiangsu Financial Leasing | Gansu Huangtai vs. GRG Banking Equipment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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