Correlation Between Guangzhou Seagull and HeNan Splendor
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and HeNan Splendor Science, you can compare the effects of market volatilities on Guangzhou Seagull and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and HeNan Splendor.
Diversification Opportunities for Guangzhou Seagull and HeNan Splendor
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and HeNan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and HeNan Splendor go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and HeNan Splendor
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the HeNan Splendor. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Seagull Kitchen is 1.07 times less risky than HeNan Splendor. The stock trades about -0.02 of its potential returns per unit of risk. The HeNan Splendor Science is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 890.00 in HeNan Splendor Science on October 16, 2024 and sell it today you would earn a total of 2.00 from holding HeNan Splendor Science or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. HeNan Splendor Science
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| HeNan Splendor Science |
Guangzhou Seagull and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and HeNan Splendor
The main advantage of trading using opposite Guangzhou Seagull and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Guangzhou Seagull vs. Hainan Haiqi Transportation | Guangzhou Seagull vs. Xinjiang Baodi Mining | Guangzhou Seagull vs. Hunan TV Broadcast | Guangzhou Seagull vs. Sichuan Fulin Transportation |
| HeNan Splendor vs. Spring Airlines Co | HeNan Splendor vs. Guangzhou Seagull Kitchen | HeNan Splendor vs. Yindu Kitchen Equipment | HeNan Splendor vs. Hangzhou Gaoxin Rubber |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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