Correlation Between Guangzhou Seagull and Integrated Electronic
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Integrated Electronic Systems, you can compare the effects of market volatilities on Guangzhou Seagull and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Integrated Electronic.
Diversification Opportunities for Guangzhou Seagull and Integrated Electronic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Integrated is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Integrated Electronic go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Integrated Electronic
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the Integrated Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Seagull Kitchen is 1.16 times less risky than Integrated Electronic. The stock trades about -0.02 of its potential returns per unit of risk. The Integrated Electronic Systems is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 691.00 in Integrated Electronic Systems on September 3, 2024 and sell it today you would earn a total of 50.00 from holding Integrated Electronic Systems or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Integrated Electronic Systems
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Integrated Electronic |
Guangzhou Seagull and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Integrated Electronic
The main advantage of trading using opposite Guangzhou Seagull and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| Guangzhou Seagull vs. Sunwave Communications Co | Guangzhou Seagull vs. Tongyu Communication | Guangzhou Seagull vs. Iat Automobile Technology | Guangzhou Seagull vs. Andon Health Co |
| Integrated Electronic vs. Cultural Investment Holdings | Integrated Electronic vs. Gome Telecom Equipment | Integrated Electronic vs. Bus Online Co | Integrated Electronic vs. Holitech Technology 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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