Correlation Between Shenzhen Clou and GRG Banking
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By analyzing existing cross correlation between Shenzhen Clou Electronics and GRG Banking Equipment, you can compare the effects of market volatilities on Shenzhen Clou and GRG Banking 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 Shenzhen Clou with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Clou and GRG Banking.
Diversification Opportunities for Shenzhen Clou and GRG Banking
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and GRG is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Clou Electronics and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Shenzhen Clou 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 Shenzhen Clou Electronics are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Shenzhen Clou i.e., Shenzhen Clou and GRG Banking go up and down completely randomly.
Pair Corralation between Shenzhen Clou and GRG Banking
Assuming the 90 days trading horizon Shenzhen Clou Electronics is expected to under-perform the GRG Banking. In addition to that, Shenzhen Clou is 1.31 times more volatile than GRG Banking Equipment. It trades about -0.23 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.21 per unit of volatility. If you would invest 1,205 in GRG Banking Equipment on October 26, 2024 and sell it today you would lose (97.00) from holding GRG Banking Equipment or give up 8.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Clou Electronics vs. GRG Banking Equipment
Performance |
| Timeline |
| Shenzhen Clou Electronics |
| GRG Banking Equipment |
Shenzhen Clou and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Clou and GRG Banking
The main advantage of trading using opposite Shenzhen Clou and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Clou position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Shenzhen Clou vs. Easyhome New Retail | Shenzhen Clou vs. Zhangjiagang Elegant Home | Shenzhen Clou vs. Miracll Chemicals Co | Shenzhen Clou vs. Zhejiang Qianjiang Motorcycle |
| GRG Banking vs. Agricultural Bank of | GRG Banking vs. Industrial and Commercial | GRG Banking vs. Bank of China | GRG Banking vs. China Construction Bank |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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