Correlation Between GRG Banking and Guangzhou Dongfang
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By analyzing existing cross correlation between GRG Banking Equipment and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Guangzhou Dongfang.
Diversification Opportunities for GRG Banking and Guangzhou Dongfang
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRG and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment 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 GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between GRG Banking and Guangzhou Dongfang
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.99 times more return on investment than Guangzhou Dongfang. However, GRG Banking Equipment is 1.01 times less risky than Guangzhou Dongfang. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about 0.06 per unit of risk. If you would invest 1,061 in GRG Banking Equipment on September 1, 2024 and sell it today you would earn a total of 245.00 from holding GRG Banking Equipment or generate 23.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| GRG Banking Equipment |
| Guangzhou Dongfang Hotel |
GRG Banking and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Guangzhou Dongfang
The main advantage of trading using opposite GRG Banking and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Semiconductor Manufacturing Intl | GRG Banking vs. Anhui Conch Cement | GRG Banking vs. Sungrow Power Supply | GRG Banking vs. Shenzhen New Nanshan |
| Guangzhou Dongfang vs. Songz Automobile Air | Guangzhou Dongfang vs. Zhejiang Publishing Media | Guangzhou Dongfang vs. Xinhua Winshare Publishing | Guangzhou Dongfang vs. Haima Automobile Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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