Correlation Between Guangdong Shenglu and Zangge Holding
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Zangge Holding Co, you can compare the effects of market volatilities on Guangdong Shenglu and Zangge Holding 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 Shenglu with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Zangge Holding.
Diversification Opportunities for Guangdong Shenglu and Zangge Holding
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Zangge is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Guangdong Shenglu 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 Shenglu Telecommunication are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Zangge Holding go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Zangge Holding
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.32 times more return on investment than Zangge Holding. However, Guangdong Shenglu is 1.32 times more volatile than Zangge Holding Co. It trades about 0.06 of its potential returns per unit of risk. Zangge Holding Co is currently generating about 0.07 per unit of risk. If you would invest 565.00 in Guangdong Shenglu Telecommunication on September 26, 2024 and sell it today you would earn a total of 107.00 from holding Guangdong Shenglu Telecommunication or generate 18.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Zangge Holding Co
Performance |
| Timeline |
| Guangdong Shenglu |
| Zangge Holding |
Guangdong Shenglu and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Zangge Holding
The main advantage of trading using opposite Guangdong Shenglu and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China |
| Zangge Holding vs. Jointo Energy Investment | Zangge Holding vs. Jiangsu Financial Leasing | Zangge Holding vs. Threes Company Media | Zangge Holding vs. Luyin Investment Group |
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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