Correlation Between Goldlok Toys and China Merchants
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By analyzing existing cross correlation between Goldlok Toys Holdings and China Merchants Bank, you can compare the effects of market volatilities on Goldlok Toys and China Merchants 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 Goldlok Toys with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldlok Toys and China Merchants.
Diversification Opportunities for Goldlok Toys and China Merchants
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Goldlok and China is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Goldlok Toys Holdings and China Merchants Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Bank and Goldlok Toys 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 Goldlok Toys Holdings are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Bank has no effect on the direction of Goldlok Toys i.e., Goldlok Toys and China Merchants go up and down completely randomly.
Pair Corralation between Goldlok Toys and China Merchants
Assuming the 90 days trading horizon Goldlok Toys Holdings is expected to generate 5.29 times more return on investment than China Merchants. However, Goldlok Toys is 5.29 times more volatile than China Merchants Bank. It trades about 0.29 of its potential returns per unit of risk. China Merchants Bank is currently generating about 0.12 per unit of risk. If you would invest 323.00 in Goldlok Toys Holdings on November 27, 2024 and sell it today you would earn a total of 64.00 from holding Goldlok Toys Holdings or generate 19.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldlok Toys Holdings vs. China Merchants Bank
Performance |
| Timeline |
| Goldlok Toys Holdings |
| China Merchants Bank |
Goldlok Toys and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldlok Toys and China Merchants
The main advantage of trading using opposite Goldlok Toys and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldlok Toys position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.| Goldlok Toys vs. Epoxy Base Electronic | Goldlok Toys vs. JCHX Mining Management | Goldlok Toys vs. China Asset Management | Goldlok Toys vs. Goke Microelectronics Co |
| China Merchants vs. Guangzhou KingTeller Technology | China Merchants vs. Eyebright Medical Technology | China Merchants vs. Hubei Huaqiang High Tech | China Merchants vs. Linewell Software 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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