Correlation Between Guangzhou Seagull and Northern United
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Northern United Publishing, you can compare the effects of market volatilities on Guangzhou Seagull and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Northern United.
Diversification Opportunities for Guangzhou Seagull and Northern United
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Northern is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Northern United go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Northern United
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to under-perform the Northern United. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Seagull Kitchen is 1.12 times less risky than Northern United. The stock trades about -0.02 of its potential returns per unit of risk. The Northern United Publishing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 672.00 in Northern United Publishing on November 7, 2024 and sell it today you would lose (20.00) from holding Northern United Publishing or give up 2.98% 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. Northern United Publishing
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northern United Publ |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guangzhou Seagull and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Northern United
The main advantage of trading using opposite Guangzhou Seagull and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.The idea behind Guangzhou Seagull Kitchen and Northern United Publishing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |