Correlation Between Guangzhou Seagull and Duzhe Publishing
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By analyzing existing cross correlation between Guangzhou Seagull Kitchen and Duzhe Publishing Media, you can compare the effects of market volatilities on Guangzhou Seagull and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Seagull and Duzhe Publishing.
Diversification Opportunities for Guangzhou Seagull and Duzhe Publishing
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Duzhe is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Seagull Kitchen and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Guangzhou Seagull i.e., Guangzhou Seagull and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Guangzhou Seagull and Duzhe Publishing
Assuming the 90 days trading horizon Guangzhou Seagull Kitchen is expected to generate 1.26 times more return on investment than Duzhe Publishing. However, Guangzhou Seagull is 1.26 times more volatile than Duzhe Publishing Media. It trades about -0.02 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about -0.09 per unit of risk. If you would invest 305.00 in Guangzhou Seagull Kitchen on October 23, 2024 and sell it today you would lose (8.00) from holding Guangzhou Seagull Kitchen or give up 2.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Seagull Kitchen vs. Duzhe Publishing Media
Performance |
| Timeline |
| Guangzhou Seagull Kitchen |
| Duzhe Publishing Media |
Guangzhou Seagull and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Seagull and Duzhe Publishing
The main advantage of trading using opposite Guangzhou Seagull and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Seagull position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| Guangzhou Seagull vs. Kailong High Technology | Guangzhou Seagull vs. Cabio Biotech Wuhan | Guangzhou Seagull vs. Yingde Greatchem Chemicals | Guangzhou Seagull vs. XiaMen HongXin Electron tech |
| Duzhe Publishing vs. CareRay Digital Medical | Duzhe Publishing vs. Guangzhou Seagull Kitchen | Duzhe Publishing vs. Shanghai Sanyou Medical | Duzhe Publishing vs. Kunwu Jiuding 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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