Correlation Between GRG Banking and Aier Eye
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By analyzing existing cross correlation between GRG Banking Equipment and Aier Eye Hospital, you can compare the effects of market volatilities on GRG Banking and Aier Eye 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 Aier Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Aier Eye.
Diversification Opportunities for GRG Banking and Aier Eye
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Aier is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Aier Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aier Eye Hospital 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 Aier Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aier Eye Hospital has no effect on the direction of GRG Banking i.e., GRG Banking and Aier Eye go up and down completely randomly.
Pair Corralation between GRG Banking and Aier Eye
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.82 times more return on investment than Aier Eye. However, GRG Banking Equipment is 1.21 times less risky than Aier Eye. It trades about 0.02 of its potential returns per unit of risk. Aier Eye Hospital is currently generating about -0.04 per unit of risk. If you would invest 1,045 in GRG Banking Equipment on November 2, 2024 and sell it today you would earn a total of 68.00 from holding GRG Banking Equipment or generate 6.51% 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. Aier Eye Hospital
Performance |
| Timeline |
| GRG Banking Equipment |
| Aier Eye Hospital |
GRG Banking and Aier Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Aier Eye
The main advantage of trading using opposite GRG Banking and Aier Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Aier Eye 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 Aier Eye will offset losses from the drop in Aier Eye's long position.| GRG Banking vs. Industrial and Commercial | GRG Banking vs. Kweichow Moutai Co | GRG Banking vs. Agricultural Bank of | GRG Banking vs. China Mobile Limited |
| Aier Eye vs. Nantong JiangTian Chemical | Aier Eye vs. Bsm Chemical Co | Aier Eye vs. Zhejiang Huatong Meat | Aier Eye vs. Ligao Foods CoLtd |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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