Correlation Between Guangzhou Seagull and Zhongshan Public
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Zhongshan Public Utilities, you can compare the effects of market volatilities on Guangzhou Seagull and Zhongshan Public 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 Guangzhou Seagull with a short position of Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Zhongshan Public.
Diversification Opportunities for Guangzhou Seagull and Zhongshan Public
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zhongshan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti and Guangzhou Seagull 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 Guangzhou Seagull Kitchen are associated (or correlated) with Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Zhongshan Public go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Zhongshan Public
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the Zhongshan Public. In addition to that, Guangzhou Seagull is 1.9 times more volatile than Zhongshan Public Utilities. It trades about -0.02 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.05 per unit of volatility. If you would invest 666.00 in Zhongshan Public Utilities on September 28, 2024 and sell it today you would earn a total of 261.00 from holding Zhongshan Public Utilities or generate 39.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Zhongshan Public Uti |
Guangzhou Seagull and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Zhongshan Public
The main advantage of trading using opposite Guangzhou Seagull and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Guangzhou Seagull vs. Cambricon Technologies Corp | Guangzhou Seagull vs. Loongson Technology Corp | Guangzhou Seagull vs. Shenzhen Fortune Trend | Guangzhou Seagull vs. Chongqing Road Bridge |
| Zhongshan Public vs. Shenzhen Noposion Agrochemicals | Zhongshan Public vs. China Publishing Media | Zhongshan Public vs. Guangzhou Jinyi Media | Zhongshan Public vs. Thinkingdom Media Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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