Correlation Between GRG Banking and Zhongtong Guomai
Specify exactly 2 symbols:
By analyzing existing cross correlation between GRG Banking Equipment and Zhongtong Guomai Communication, you can compare the effects of market volatilities on GRG Banking and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Zhongtong Guomai.
Diversification Opportunities for GRG Banking and Zhongtong Guomai
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Zhongtong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of GRG Banking i.e., GRG Banking and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between GRG Banking and Zhongtong Guomai
Assuming the 90 days trading horizon GRG Banking is expected to generate 16.13 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, GRG Banking Equipment is 1.51 times less risky than Zhongtong Guomai. It trades about 0.02 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Zhongtong Guomai Communication on August 29, 2024 and sell it today you would earn a total of 158.00 from holding Zhongtong Guomai Communication or generate 17.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| GRG Banking Equipment |
| Zhongtong Guomai Com |
GRG Banking and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Zhongtong Guomai
The main advantage of trading using opposite GRG Banking and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| GRG Banking vs. China State Construction | GRG Banking vs. Huafa Industrial Co | GRG Banking vs. China International Capital | GRG Banking vs. Kweichow Moutai Co |
| Zhongtong Guomai vs. Jilin Jlu Communication | Zhongtong Guomai vs. Miracll Chemicals Co | Zhongtong Guomai vs. Gome Telecom Equipment | Zhongtong Guomai vs. Soyea Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |