Correlation Between Success Electronics and Guangzhou Shiyuan
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By analyzing existing cross correlation between Success Electronics and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Success Electronics and Guangzhou Shiyuan 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 Success Electronics with a short position of Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Success Electronics and Guangzhou Shiyuan.
Diversification Opportunities for Success Electronics and Guangzhou Shiyuan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Success and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Success Electronics and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan and Success Electronics 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 Success Electronics are associated (or correlated) with Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Success Electronics i.e., Success Electronics and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Success Electronics and Guangzhou Shiyuan
Assuming the 90 days trading horizon Success Electronics is expected to generate 0.87 times more return on investment than Guangzhou Shiyuan. However, Success Electronics is 1.15 times less risky than Guangzhou Shiyuan. It trades about 0.09 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.01 per unit of risk. If you would invest 401.00 in Success Electronics on September 14, 2024 and sell it today you would earn a total of 19.00 from holding Success Electronics or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Success Electronics vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Success Electronics |
| Guangzhou Shiyuan |
Success Electronics and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Success Electronics and Guangzhou Shiyuan
The main advantage of trading using opposite Success Electronics and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Success Electronics position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Success Electronics vs. Industrial and Commercial | Success Electronics vs. Agricultural Bank of | Success Electronics vs. China Construction Bank | Success Electronics vs. Bank of China |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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