Correlation Between GRG Banking and Porton Fine
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By analyzing existing cross correlation between GRG Banking Equipment and Porton Fine Chemicals, you can compare the effects of market volatilities on GRG Banking and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Porton Fine.
Diversification Opportunities for GRG Banking and Porton Fine
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Porton is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine Chemicals 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of GRG Banking i.e., GRG Banking and Porton Fine go up and down completely randomly.
Pair Corralation between GRG Banking and Porton Fine
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.7 times more return on investment than Porton Fine. However, GRG Banking Equipment is 1.44 times less risky than Porton Fine. It trades about 0.02 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.05 per unit of risk. If you would invest 980.00 in GRG Banking Equipment on October 11, 2024 and sell it today you would earn a total of 95.00 from holding GRG Banking Equipment or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Porton Fine Chemicals
Performance |
| Timeline |
| GRG Banking Equipment |
| Porton Fine Chemicals |
GRG Banking and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Porton Fine
The main advantage of trading using opposite GRG Banking and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine's long position.| GRG Banking vs. Jiangsu Yueda Investment | GRG Banking vs. Shenzhen Clou Electronics | GRG Banking vs. Hangzhou Arcvideo Technology | GRG Banking vs. Beijing YanDong MicroElectronic |
| Porton Fine vs. Hubei Forbon Technology | Porton Fine vs. Soyea Technology Co | Porton Fine vs. Ningbo Kangqiang Electronics | Porton Fine vs. Jinlong Machinery Electronic |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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