Correlation Between Taiji Computer and Guangdong Wens
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By analyzing existing cross correlation between Taiji Computer Corp and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Taiji Computer and Guangdong Wens 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 Taiji Computer with a short position of Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiji Computer and Guangdong Wens.
Diversification Opportunities for Taiji Computer and Guangdong Wens
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Taiji and Guangdong is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Taiji Computer Corp and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff and Taiji Computer 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 Taiji Computer Corp are associated (or correlated) with Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Taiji Computer i.e., Taiji Computer and Guangdong Wens go up and down completely randomly.
Pair Corralation between Taiji Computer and Guangdong Wens
Assuming the 90 days trading horizon Taiji Computer Corp is expected to generate 1.49 times more return on investment than Guangdong Wens. However, Taiji Computer is 1.49 times more volatile than Guangdong Wens Foodstuff. It trades about 0.02 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.05 per unit of risk. If you would invest 2,211 in Taiji Computer Corp on October 17, 2024 and sell it today you would earn a total of 43.00 from holding Taiji Computer Corp or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiji Computer Corp vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Taiji Computer Corp |
| Guangdong Wens Foodstuff |
Taiji Computer and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiji Computer and Guangdong Wens
The main advantage of trading using opposite Taiji Computer and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiji Computer position performs unexpectedly, Guangdong Wens 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 Wens will offset losses from the drop in Guangdong Wens' long position.| Taiji Computer vs. Guangdong Wens Foodstuff | Taiji Computer vs. Maoming Petro Chemical Shihua | Taiji Computer vs. Great Sun Foods Co | Taiji Computer vs. Jinsanjiang Silicon Material |
| Guangdong Wens vs. Industrial and Commercial | Guangdong Wens vs. Agricultural Bank of | Guangdong Wens vs. China Construction Bank | Guangdong Wens 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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