Correlation Between Guangdong Shenglu and Shandong Xinhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Shandong Xinhua Pharmaceutical, you can compare the effects of market volatilities on Guangdong Shenglu and Shandong Xinhua 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 Shandong Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Shandong Xinhua.
Diversification Opportunities for Guangdong Shenglu and Shandong Xinhua
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shandong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Shandong Xinhua Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Xinhua Phar 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 Shandong Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Xinhua Phar has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Shandong Xinhua go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Shandong Xinhua
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.22 times more return on investment than Shandong Xinhua. However, Guangdong Shenglu is 1.22 times more volatile than Shandong Xinhua Pharmaceutical. It trades about 0.0 of its potential returns per unit of risk. Shandong Xinhua Pharmaceutical is currently generating about -0.02 per unit of risk. If you would invest 893.00 in Guangdong Shenglu Telecommunication on September 4, 2024 and sell it today you would lose (150.00) from holding Guangdong Shenglu Telecommunication or give up 16.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Shandong Xinhua Pharmaceutical
Performance |
| Timeline |
| Guangdong Shenglu |
| Shandong Xinhua Phar |
Guangdong Shenglu and Shandong Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Shandong Xinhua
The main advantage of trading using opposite Guangdong Shenglu and Shandong Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Shandong Xinhua 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 Shandong Xinhua will offset losses from the drop in Shandong Xinhua's long position.| Guangdong Shenglu vs. Impulse Qingdao Health | Guangdong Shenglu vs. Hangzhou Coco Healthcare | Guangdong Shenglu vs. Andon Health Co | Guangdong Shenglu vs. Integrated Electronic Systems |
| Shandong Xinhua vs. Xilinmen Furniture Co | Shandong Xinhua vs. Shanghai Ziyan Foods | Shandong Xinhua vs. UE Furniture Co | Shandong Xinhua vs. Fujian Anjoy Foods |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |