Correlation Between Integrated Electronic and Guangzhou Shiyuan
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By analyzing existing cross correlation between Integrated Electronic Systems and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Integrated Electronic 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 Integrated Electronic with a short position of Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Electronic and Guangzhou Shiyuan.
Diversification Opportunities for Integrated Electronic and Guangzhou Shiyuan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Integrated and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Electronic Systems and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan and Integrated Electronic 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 Integrated Electronic Systems 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 Integrated Electronic i.e., Integrated Electronic and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Integrated Electronic and Guangzhou Shiyuan
Assuming the 90 days trading horizon Integrated Electronic Systems is expected to generate 1.09 times more return on investment than Guangzhou Shiyuan. However, Integrated Electronic is 1.09 times more volatile than Guangzhou Shiyuan Electronic. 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 719.00 in Integrated Electronic Systems on September 14, 2024 and sell it today you would earn a total of 43.00 from holding Integrated Electronic Systems or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Electronic Systems vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Integrated Electronic |
| Guangzhou Shiyuan |
Integrated Electronic and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Electronic and Guangzhou Shiyuan
The main advantage of trading using opposite Integrated Electronic and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Electronic 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.| Integrated Electronic vs. Industrial and Commercial | Integrated Electronic vs. Agricultural Bank of | Integrated Electronic vs. China Construction Bank | Integrated Electronic 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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