Correlation Between Guangdong Advertising and Guangdong Skychem
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By analyzing existing cross correlation between Guangdong Advertising Co and Guangdong Skychem Technology, you can compare the effects of market volatilities on Guangdong Advertising and Guangdong Skychem 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 Guangdong Skychem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Advertising and Guangdong Skychem.
Diversification Opportunities for Guangdong Advertising and Guangdong Skychem
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Guangdong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Advertising Co and Guangdong Skychem Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Skychem 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 Guangdong Skychem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Skychem has no effect on the direction of Guangdong Advertising i.e., Guangdong Advertising and Guangdong Skychem go up and down completely randomly.
Pair Corralation between Guangdong Advertising and Guangdong Skychem
Assuming the 90 days trading horizon Guangdong Advertising is expected to generate 1.52 times less return on investment than Guangdong Skychem. In addition to that, Guangdong Advertising is 1.04 times more volatile than Guangdong Skychem Technology. It trades about 0.13 of its total potential returns per unit of risk. Guangdong Skychem Technology is currently generating about 0.21 per unit of volatility. If you would invest 4,990 in Guangdong Skychem Technology on September 27, 2024 and sell it today you would earn a total of 7,465 from holding Guangdong Skychem Technology or generate 149.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Advertising Co vs. Guangdong Skychem Technology
Performance |
| Timeline |
| Guangdong Advertising |
| Guangdong Skychem |
Guangdong Advertising and Guangdong Skychem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Advertising and Guangdong Skychem
The main advantage of trading using opposite Guangdong Advertising and Guangdong Skychem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Advertising position performs unexpectedly, Guangdong Skychem 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 Skychem will offset losses from the drop in Guangdong Skychem's long position.| Guangdong Advertising vs. Emdoor Information Co | Guangdong Advertising vs. Jiangsu Yanghe Brewery | Guangdong Advertising vs. Shanghai Construction Group | Guangdong Advertising vs. Chongqing Brewery Co |
| Guangdong Skychem vs. Industrial and Commercial | Guangdong Skychem vs. Kweichow Moutai Co | Guangdong Skychem vs. Agricultural Bank of | Guangdong Skychem vs. China Mobile Limited |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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