Correlation Between Guangzhou Seagull and Changchun Engley
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Changchun Engley Automobile, you can compare the effects of market volatilities on Guangzhou Seagull and Changchun Engley 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 Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Changchun Engley.
Diversification Opportunities for Guangzhou Seagull and Changchun Engley
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Changchun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut 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 Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Changchun Engley go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Changchun Engley
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.09 times more return on investment than Changchun Engley. However, Guangzhou Seagull is 1.09 times more volatile than Changchun Engley Automobile. It trades about 0.0 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about -0.05 per unit of risk. If you would invest 401.00 in Guangzhou Seagull Kitchen on September 2, 2024 and sell it today you would lose (63.00) from holding Guangzhou Seagull Kitchen or give up 15.71% 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. Changchun Engley Automobile
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Changchun Engley Aut |
Guangzhou Seagull and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Changchun Engley
The main advantage of trading using opposite Guangzhou Seagull and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Kweichow Moutai Co | Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. China Mobile Limited |
| Changchun Engley vs. BYD Co Ltd | Changchun Engley vs. China Mobile Limited | Changchun Engley vs. Agricultural Bank of | Changchun Engley vs. Industrial and Commercial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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