Correlation Between GRG Banking and Guangdong Silvere
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By analyzing existing cross correlation between GRG Banking Equipment and Guangdong Silvere Sci, you can compare the effects of market volatilities on GRG Banking and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Guangdong Silvere.
Diversification Opportunities for GRG Banking and Guangdong Silvere
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRG and Guangdong is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of GRG Banking i.e., GRG Banking and Guangdong Silvere go up and down completely randomly.
Pair Corralation between GRG Banking and Guangdong Silvere
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Guangdong Silvere. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 1.15 times less risky than Guangdong Silvere. The stock trades about -0.06 of its potential returns per unit of risk. The Guangdong Silvere Sci is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 638.00 in Guangdong Silvere Sci on October 26, 2024 and sell it today you would earn a total of 2.00 from holding Guangdong Silvere Sci or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Guangdong Silvere Sci
Performance |
| Timeline |
| GRG Banking Equipment |
| Guangdong Silvere Sci |
GRG Banking and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Guangdong Silvere
The main advantage of trading using opposite GRG Banking and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| GRG Banking vs. Agricultural Bank of | GRG Banking vs. Industrial and Commercial | GRG Banking vs. Bank of China | GRG Banking vs. China Construction Bank |
| Guangdong Silvere vs. Agricultural Bank of | Guangdong Silvere vs. China Everbright Bank | Guangdong Silvere vs. GRG Banking Equipment | Guangdong Silvere vs. Shanghai Yanpu Metal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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