Correlation Between Guangdong Shenglu and Emdoor Information
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Emdoor Information Co, you can compare the effects of market volatilities on Guangdong Shenglu and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Emdoor Information.
Diversification Opportunities for Guangdong Shenglu and Emdoor Information
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and Emdoor is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Emdoor Information go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Emdoor Information
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Emdoor Information. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.97 times less risky than Emdoor Information. The stock trades about -0.2 of its potential returns per unit of risk. The Emdoor Information Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,961 in Emdoor Information Co on October 17, 2024 and sell it today you would lose (388.00) from holding Emdoor Information Co or give up 7.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Emdoor Information Co
Performance |
| Timeline |
| Guangdong Shenglu |
| Emdoor Information |
Guangdong Shenglu and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Emdoor Information
The main advantage of trading using opposite Guangdong Shenglu and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Guangdong Shenglu vs. ZYF Lopsking Aluminum | Guangdong Shenglu vs. Guangdong Jinma Entertainment | Guangdong Shenglu vs. Chengdu B ray Media | Guangdong Shenglu vs. JiShi Media Co |
| Emdoor Information vs. Jiangsu Financial Leasing | Emdoor Information vs. Jiugui Liquor Co | Emdoor Information vs. Sino Platinum Metals Co | Emdoor Information vs. Jinhui Liquor Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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