Correlation Between GRG Banking and Shandong Homey
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By analyzing existing cross correlation between GRG Banking Equipment and Shandong Homey Aquatic, you can compare the effects of market volatilities on GRG Banking and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Shandong Homey.
Diversification Opportunities for GRG Banking and Shandong Homey
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Shandong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of GRG Banking i.e., GRG Banking and Shandong Homey go up and down completely randomly.
Pair Corralation between GRG Banking and Shandong Homey
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.78 times more return on investment than Shandong Homey. However, GRG Banking Equipment is 1.28 times less risky than Shandong Homey. It trades about 0.02 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.01 per unit of risk. If you would invest 1,001 in GRG Banking Equipment on October 14, 2024 and sell it today you would earn a total of 59.00 from holding GRG Banking Equipment or generate 5.89% 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. Shandong Homey Aquatic
Performance |
| Timeline |
| GRG Banking Equipment |
| Shandong Homey Aquatic |
GRG Banking and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Shandong Homey
The main advantage of trading using opposite GRG Banking and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey'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 |
| Shandong Homey vs. Guangdong Wens Foodstuff | Shandong Homey vs. Guilin Seamild Foods | Shandong Homey vs. Olympic Circuit Technology | Shandong Homey vs. Linewell Software Co |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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