Correlation Between GRG Banking and Guangdong Skychem
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By analyzing existing cross correlation between GRG Banking Equipment and Guangdong Skychem Technology, you can compare the effects of market volatilities on GRG Banking and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Guangdong Skychem.
Diversification Opportunities for GRG Banking and Guangdong Skychem
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GRG and Guangdong is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of GRG Banking i.e., GRG Banking and Guangdong Skychem go up and down completely randomly.
Pair Corralation between GRG Banking and Guangdong Skychem
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Guangdong Skychem. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 2.45 times less risky than Guangdong Skychem. The stock trades about -0.41 of its potential returns per unit of risk. The Guangdong Skychem Technology is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 8,655 in Guangdong Skychem Technology on October 15, 2024 and sell it today you would lose (491.00) from holding Guangdong Skychem Technology or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Guangdong Skychem Technology
Performance |
| Timeline |
| GRG Banking Equipment |
| Guangdong Skychem |
GRG Banking and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Guangdong Skychem
The main advantage of trading using opposite GRG Banking and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Guangdong Skychem 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 Guangdong Skychem will offset losses from the drop in Guangdong Skychem'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 |
| Guangdong Skychem vs. Huayi Brothers Media | Guangdong Skychem vs. Beijing Enlight Media | Guangdong Skychem vs. Thinkingdom Media Group | Guangdong Skychem vs. Yingde Greatchem Chemicals |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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