Correlation Between Western Metal and Guangzhou Dongfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Western Metal Materials and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Western Metal and Guangzhou Dongfang 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 Western Metal with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Guangzhou Dongfang.
Diversification Opportunities for Western Metal and Guangzhou Dongfang
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Western and Guangzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Western Metal 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 Western Metal Materials are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Western Metal i.e., Western Metal and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Western Metal and Guangzhou Dongfang
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 0.87 times more return on investment than Guangzhou Dongfang. However, Western Metal Materials is 1.14 times less risky than Guangzhou Dongfang. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about 0.0 per unit of risk. If you would invest 1,654 in Western Metal Materials on October 11, 2024 and sell it today you would earn a total of 61.00 from holding Western Metal Materials or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Western Metal Materials |
| Guangzhou Dongfang Hotel |
Western Metal and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Guangzhou Dongfang
The main advantage of trading using opposite Western Metal and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Western Metal vs. Anhui Deli Household | Western Metal vs. Zhangjiagang Freetrade Science | Western Metal vs. Chahua Modern Housewares | Western Metal vs. Tibet Huayu Mining |
| Guangzhou Dongfang vs. Shaanxi Meineng Clean | Guangzhou Dongfang vs. Rongcheer Industrial Technology | Guangzhou Dongfang vs. Western Metal Materials | Guangzhou Dongfang vs. Minmetals Capital Co |
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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |