Correlation Between Guangzhou Seagull and Fujian Nanwang
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Fujian Nanwang Environment, you can compare the effects of market volatilities on Guangzhou Seagull and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Fujian Nanwang.
Diversification Opportunities for Guangzhou Seagull and Fujian Nanwang
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Fujian is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Fujian Nanwang
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.16 times more return on investment than Fujian Nanwang. However, Guangzhou Seagull is 1.16 times more volatile than Fujian Nanwang Environment. It trades about 0.0 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about -0.02 per unit of risk. If you would invest 399.00 in Guangzhou Seagull Kitchen on September 12, 2024 and sell it today you would lose (52.00) from holding Guangzhou Seagull Kitchen or give up 13.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Fujian Nanwang Environment
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Fujian Nanwang Envir |
Guangzhou Seagull and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Fujian Nanwang
The main advantage of trading using opposite Guangzhou Seagull and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's 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 |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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