Correlation Between Guangzhou Seagull and Xinjiang Communications
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Xinjiang Communications Construction, you can compare the effects of market volatilities on Guangzhou Seagull and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Xinjiang Communications.
Diversification Opportunities for Guangzhou Seagull and Xinjiang Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Xinjiang Communications
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.26 times more return on investment than Xinjiang Communications. However, Guangzhou Seagull is 1.26 times more volatile than Xinjiang Communications Construction. It trades about 0.21 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.06 per unit of risk. If you would invest 318.00 in Guangzhou Seagull Kitchen on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Guangzhou Seagull Kitchen or generate 9.12% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Xinjiang Communications |
Guangzhou Seagull and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Xinjiang Communications
The main advantage of trading using opposite Guangzhou Seagull and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Bank of China | Guangzhou Seagull vs. PetroChina Co Ltd |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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