Correlation Between GRG Banking and New China
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By analyzing existing cross correlation between GRG Banking Equipment and New China Life, you can compare the effects of market volatilities on GRG Banking and New China 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 New China. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and New China.
Diversification Opportunities for GRG Banking and New China
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and New is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and New China Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New China Life 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 New China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New China Life has no effect on the direction of GRG Banking i.e., GRG Banking and New China go up and down completely randomly.
Pair Corralation between GRG Banking and New China
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the New China. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 1.3 times less risky than New China. The stock trades about -0.2 of its potential returns per unit of risk. The New China Life is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 5,199 in New China Life on October 29, 2024 and sell it today you would lose (343.00) from holding New China Life or give up 6.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
GRG Banking Equipment vs. New China Life
Performance |
| Timeline |
| GRG Banking Equipment |
| New China Life |
GRG Banking and New China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and New China
The main advantage of trading using opposite GRG Banking and New China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, New China 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 New China will offset losses from the drop in New China's long position.| GRG Banking vs. Kailong High Technology | GRG Banking vs. HUAQIN TECHNOLOGY LTD | GRG Banking vs. Jilin Jlu Communication | GRG Banking vs. Ningbo Fangzheng Automobile |
| New China vs. Beijing YanDong MicroElectronic | New China vs. YiDong Electronics Technology | New China vs. Dongfeng Automobile Co | New China vs. Zhonghang Electronic Measuring |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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