Correlation Between Emdoor Information and Guangdong Shenglu
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By analyzing existing cross correlation between Emdoor Information Co and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Emdoor Information and Guangdong Shenglu 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 Emdoor Information with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and Guangdong Shenglu.
Diversification Opportunities for Emdoor Information and Guangdong Shenglu
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Emdoor and Guangdong is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Emdoor Information 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 Emdoor Information Co are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Emdoor Information i.e., Emdoor Information and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Emdoor Information and Guangdong Shenglu
Assuming the 90 days trading horizon Emdoor Information Co is expected to generate 1.97 times more return on investment than Guangdong Shenglu. However, Emdoor Information is 1.97 times more volatile than Guangdong Shenglu Telecommunication. It trades about -0.04 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.2 per unit of risk. If you would invest 4,961 in Emdoor Information Co on October 17, 2024 and sell it today you would lose (388.00) from holding Emdoor Information Co or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emdoor Information Co vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Emdoor Information |
| Guangdong Shenglu |
Emdoor Information and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and Guangdong Shenglu
The main advantage of trading using opposite Emdoor Information and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, Guangdong Shenglu 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 Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Emdoor Information vs. Jiangsu Financial Leasing | Emdoor Information vs. Jiugui Liquor Co | Emdoor Information vs. Sino Platinum Metals Co | Emdoor Information vs. Jinhui Liquor Co |
| Guangdong Shenglu vs. ZYF Lopsking Aluminum | Guangdong Shenglu vs. Guangdong Jinma Entertainment | Guangdong Shenglu vs. Chengdu B ray Media | Guangdong Shenglu vs. JiShi Media 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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