Correlation Between Guangdong Shenglu and China Securities
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and China Securities 800, you can compare the effects of market volatilities on Guangdong Shenglu and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and China Securities.
Diversification Opportunities for Guangdong Shenglu and China Securities
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and China Securities go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and China Securities
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.99 times more return on investment than China Securities. However, Guangdong Shenglu is 1.99 times more volatile than China Securities 800. It trades about -0.01 of its potential returns per unit of risk. China Securities 800 is currently generating about -0.04 per unit of risk. If you would invest 736.00 in Guangdong Shenglu Telecommunication on September 21, 2024 and sell it today you would lose (7.00) from holding Guangdong Shenglu Telecommunication or give up 0.95% 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. China Securities 800
Performance |
| Timeline |
Guangdong Shenglu and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Guangdong Shenglu Telecommunication
Pair trading matchups for Guangdong Shenglu
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Guangdong Shenglu and China Securities
The main advantage of trading using opposite Guangdong Shenglu and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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