Correlation Between Guangdong Advertising and Inner Mongolia
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By analyzing existing cross correlation between Guangdong Advertising Co and Inner Mongolia Furui, you can compare the effects of market volatilities on Guangdong Advertising and Inner Mongolia 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 Guangdong Advertising with a short position of Inner Mongolia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Inner Mongolia.
Diversification Opportunities for Guangdong Advertising and Inner Mongolia
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Inner is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising Co and Inner Mongolia Furui in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inner Mongolia Furui and Guangdong Advertising 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 Guangdong Advertising Co are associated (or correlated) with Inner Mongolia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inner Mongolia Furui has no effect on the direction of Guangdong Advertising i.e., Guangdong Advertising and Inner Mongolia go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Inner Mongolia
Assuming the 90 days trading horizon Guangdong Advertising Co is expected to generate 0.86 times more return on investment than Inner Mongolia. However, Guangdong Advertising Co is 1.17 times less risky than Inner Mongolia. It trades about 0.06 of its potential returns per unit of risk. Inner Mongolia Furui is currently generating about 0.03 per unit of risk. If you would invest 436.00 in Guangdong Advertising Co on September 3, 2024 and sell it today you would earn a total of 420.00 from holding Guangdong Advertising Co or generate 96.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Advertising Co vs. Inner Mongolia Furui
Performance |
| Timeline |
| Guangdong Advertising |
| Inner Mongolia Furui |
Guangdong Advertising and Inner Mongolia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Advertising and Inner Mongolia
The main advantage of trading using opposite Guangdong Advertising and Inner Mongolia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising position performs unexpectedly, Inner Mongolia 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 Inner Mongolia will offset losses from the drop in Inner Mongolia's long position.| Guangdong Advertising vs. Guocheng Mining Co | Guangdong Advertising vs. Guangzhou Haige Communications | Guangdong Advertising vs. FSPG Hi Tech Co | Guangdong Advertising vs. Sunwave Communications Co |
| Inner Mongolia vs. Dook Media Group | Inner Mongolia vs. GreenTech Environmental Co | Inner Mongolia vs. Xizi Clean Energy | Inner Mongolia vs. Lingyuan Iron Steel |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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