Correlation Between GRG Banking and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between GRG Banking Equipment and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on GRG Banking and Guangzhou Ruoyuchen 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 Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Guangzhou Ruoyuchen.
Diversification Opportunities for GRG Banking and Guangzhou Ruoyuchen
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRG and Guangzhou is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of GRG Banking i.e., GRG Banking and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between GRG Banking and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon GRG Banking is expected to generate 4.84 times less return on investment than Guangzhou Ruoyuchen. But when comparing it to its historical volatility, GRG Banking Equipment is 1.59 times less risky than Guangzhou Ruoyuchen. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Ruoyuchen Information is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,256 in Guangzhou Ruoyuchen Information on October 16, 2024 and sell it today you would earn a total of 1,199 from holding Guangzhou Ruoyuchen Information or generate 95.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| GRG Banking Equipment |
| Guangzhou Ruoyuchen |
GRG Banking and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Guangzhou Ruoyuchen
The main advantage of trading using opposite GRG Banking and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Guangzhou Ruoyuchen 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 Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| GRG Banking vs. Zhejiang Construction Investment | GRG Banking vs. Chengdu B ray Media | GRG Banking vs. Changjiang Publishing Media | GRG Banking vs. Wasu Media Holding |
| Guangzhou Ruoyuchen vs. HeNan Splendor Science | Guangzhou Ruoyuchen vs. Heilongjiang Transport Development | Guangzhou Ruoyuchen vs. GRG Banking Equipment | Guangzhou Ruoyuchen vs. Agricultural Bank of |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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