Correlation Between Guangzhou Seagull and 37 Interactive
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and 37 Interactive Entertainment, you can compare the effects of market volatilities on Guangzhou Seagull and 37 Interactive 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 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and 37 Interactive.
Diversification Opportunities for Guangzhou Seagull and 37 Interactive
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and 002555 is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter 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 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and 37 Interactive go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and 37 Interactive
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the 37 Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Seagull Kitchen is 1.13 times less risky than 37 Interactive. The stock trades about -0.02 of its potential returns per unit of risk. The 37 Interactive Entertainment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,901 in 37 Interactive Entertainment on October 15, 2024 and sell it today you would lose (479.00) from holding 37 Interactive Entertainment or give up 25.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. 37 Interactive Entertainment
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| 37 Interactive Enter |
Guangzhou Seagull and 37 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and 37 Interactive
The main advantage of trading using opposite Guangzhou Seagull and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive'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 |
| 37 Interactive vs. Bank of Communications | 37 Interactive vs. Beijing YanDong MicroElectronic | 37 Interactive vs. Runjian Communication Co | 37 Interactive vs. State Grid InformationCommunication |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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