Correlation Between Guangzhou Seagull and Gansu Yasheng
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Guangzhou Seagull and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Gansu Yasheng.
Diversification Opportunities for Guangzhou Seagull and Gansu Yasheng
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Gansu is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Gansu Yasheng
Assuming the 90 days trading horizon Guangzhou Seagull is expected to generate 2.8 times less return on investment than Gansu Yasheng. In addition to that, Guangzhou Seagull is 1.69 times more volatile than Gansu Yasheng Industrial. It trades about 0.0 of its total potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about 0.01 per unit of volatility. If you would invest 314.00 in Gansu Yasheng Industrial on September 12, 2024 and sell it today you would lose (2.00) from holding Gansu Yasheng Industrial or give up 0.64% 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. Gansu Yasheng Industrial
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Gansu Yasheng Industrial |
Guangzhou Seagull and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Gansu Yasheng
The main advantage of trading using opposite Guangzhou Seagull and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng'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 |
| Gansu Yasheng vs. China Petroleum Chemical | Gansu Yasheng vs. PetroChina Co Ltd | Gansu Yasheng vs. China State Construction | Gansu Yasheng vs. China Railway Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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