Correlation Between GRG Banking and Shanghai Yaoji
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By analyzing existing cross correlation between GRG Banking Equipment and Shanghai Yaoji Playing, you can compare the effects of market volatilities on GRG Banking and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Shanghai Yaoji.
Diversification Opportunities for GRG Banking and Shanghai Yaoji
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of GRG Banking i.e., GRG Banking and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between GRG Banking and Shanghai Yaoji
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 1.5 times less risky than Shanghai Yaoji. The stock trades about -0.04 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,377 in Shanghai Yaoji Playing on October 14, 2024 and sell it today you would earn a total of 83.00 from holding Shanghai Yaoji Playing or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| GRG Banking Equipment |
| Shanghai Yaoji Playing |
GRG Banking and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Shanghai Yaoji
The main advantage of trading using opposite GRG Banking and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| GRG Banking vs. Shanghai Sanyou Medical | GRG Banking vs. Guangdong Transtek Medical | GRG Banking vs. Dazhong Transportation Group | GRG Banking vs. Nanjing Vishee Medical |
| Shanghai Yaoji vs. Innovative Medical Management | Shanghai Yaoji vs. Eastroc Beverage Group | Shanghai Yaoji vs. JCHX Mining Management | Shanghai Yaoji vs. GRG Banking Equipment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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