Correlation Between Blue Sail and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Blue Sail Medical and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Blue Sail and Guangzhou Ruoyuchen 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 Blue Sail with a short position of Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Sail and Guangzhou Ruoyuchen.
Diversification Opportunities for Blue Sail and Guangzhou Ruoyuchen
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Blue and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Blue Sail Medical and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen and Blue Sail 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 Blue Sail Medical are associated (or correlated) with Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Blue Sail i.e., Blue Sail and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Blue Sail and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Blue Sail is expected to generate 11.45 times less return on investment than Guangzhou Ruoyuchen. But when comparing it to its historical volatility, Blue Sail Medical is 1.81 times less risky than Guangzhou Ruoyuchen. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Ruoyuchen Information is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,404 in Guangzhou Ruoyuchen Information on August 29, 2024 and sell it today you would earn a total of 676.00 from holding Guangzhou Ruoyuchen Information or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Sail Medical vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Blue Sail Medical |
| Guangzhou Ruoyuchen |
Blue Sail and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Sail and Guangzhou Ruoyuchen
The main advantage of trading using opposite Blue Sail and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Sail position performs unexpectedly, Guangzhou Ruoyuchen 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 Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen's long position.| Blue Sail vs. Industrial and Commercial | Blue Sail vs. China Construction Bank | Blue Sail vs. Agricultural Bank of | Blue Sail vs. Bank of China |
| Guangzhou Ruoyuchen vs. Industrial and Commercial | Guangzhou Ruoyuchen vs. Agricultural Bank of | Guangzhou Ruoyuchen vs. China Construction Bank | Guangzhou Ruoyuchen 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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