Correlation Between GRG Banking and Changchun Faway
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By analyzing existing cross correlation between GRG Banking Equipment and Changchun Faway Automobile, you can compare the effects of market volatilities on GRG Banking and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Changchun Faway.
Diversification Opportunities for GRG Banking and Changchun Faway
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRG and Changchun is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of GRG Banking i.e., GRG Banking and Changchun Faway go up and down completely randomly.
Pair Corralation between GRG Banking and Changchun Faway
Assuming the 90 days trading horizon GRG Banking is expected to generate 1.13 times less return on investment than Changchun Faway. But when comparing it to its historical volatility, GRG Banking Equipment is 1.03 times less risky than Changchun Faway. It trades about 0.02 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 936.00 in Changchun Faway Automobile on August 25, 2024 and sell it today you would earn a total of 39.00 from holding Changchun Faway Automobile or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Changchun Faway Automobile
Performance |
| Timeline |
| GRG Banking Equipment |
| Changchun Faway Auto |
GRG Banking and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Changchun Faway
The main advantage of trading using opposite GRG Banking and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| GRG Banking vs. Ming Yang Smart | GRG Banking vs. 159005 | GRG Banking vs. Loctek Ergonomic Technology | GRG Banking vs. Xiamen East Asia |
| Changchun Faway vs. Shenzhen Zhongzhuang Construction | Changchun Faway vs. Kuangda Technology Group | Changchun Faway vs. Glodon Software Co | Changchun Faway vs. Hubei Forbon Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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