Correlation Between China Merchants and Gansu Huangtai
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By analyzing existing cross correlation between China Merchants Shekou and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on China Merchants 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 China Merchants with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Gansu Huangtai.
Diversification Opportunities for China Merchants and Gansu Huangtai
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Gansu is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou 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 China Merchants 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 China Merchants Shekou 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 China Merchants i.e., China Merchants and Gansu Huangtai go up and down completely randomly.
Pair Corralation between China Merchants and Gansu Huangtai
Assuming the 90 days trading horizon China Merchants Shekou is expected to generate 0.34 times more return on investment than Gansu Huangtai. However, China Merchants Shekou is 2.91 times less risky than Gansu Huangtai. It trades about -0.07 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about -0.12 per unit of risk. If you would invest 999.00 in China Merchants Shekou on November 3, 2024 and sell it today you would lose (21.00) from holding China Merchants Shekou or give up 2.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| China Merchants Shekou |
| Gansu Huangtai Wine |
China Merchants and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Gansu Huangtai
The main advantage of trading using opposite China Merchants and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants 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.| China Merchants vs. Western Metal Materials | China Merchants vs. Shenzhen SDG Information | China Merchants vs. Hangzhou Gisway Information | China Merchants vs. Guangzhou Ruoyuchen Information |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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