Correlation Between Shandong Hongchuang and Guangdong Silvere
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By analyzing existing cross correlation between Shandong Hongchuang Aluminum and Guangdong Silvere Sci, you can compare the effects of market volatilities on Shandong Hongchuang and Guangdong Silvere 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 Shandong Hongchuang with a short position of Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Hongchuang and Guangdong Silvere.
Diversification Opportunities for Shandong Hongchuang and Guangdong Silvere
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shandong and Guangdong is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Hongchuang Aluminum and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci and Shandong Hongchuang 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 Shandong Hongchuang Aluminum are associated (or correlated) with Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Shandong Hongchuang i.e., Shandong Hongchuang and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Shandong Hongchuang and Guangdong Silvere
Assuming the 90 days trading horizon Shandong Hongchuang Aluminum is expected to generate 0.76 times more return on investment than Guangdong Silvere. However, Shandong Hongchuang Aluminum is 1.31 times less risky than Guangdong Silvere. It trades about 0.08 of its potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.01 per unit of risk. If you would invest 437.00 in Shandong Hongchuang Aluminum on October 14, 2024 and sell it today you would earn a total of 530.00 from holding Shandong Hongchuang Aluminum or generate 121.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shandong Hongchuang Aluminum vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Shandong Hongchuang |
| Guangdong Silvere Sci |
Shandong Hongchuang and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Hongchuang and Guangdong Silvere
The main advantage of trading using opposite Shandong Hongchuang and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Hongchuang position performs unexpectedly, Guangdong Silvere 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 Silvere will offset losses from the drop in Guangdong Silvere's long position.| Shandong Hongchuang vs. Xiandai Investment Co | Shandong Hongchuang vs. Jahen Household Products | Shandong Hongchuang vs. Cultural Investment Holdings | Shandong Hongchuang vs. Beijing Jiaman Dress |
| Guangdong Silvere vs. Songz Automobile Air | Guangdong Silvere vs. Changchun Engley Automobile | Guangdong Silvere vs. Shandong Hongchuang Aluminum | Guangdong Silvere vs. Ningbo Fangzheng Automobile |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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