Correlation Between Guangdong Shenglu and Allwin Telecommunicatio
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Allwin Telecommunication Co, you can compare the effects of market volatilities on Guangdong Shenglu and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Allwin Telecommunicatio.
Diversification Opportunities for Guangdong Shenglu and Allwin Telecommunicatio
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Allwin is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Allwin Telecommunicatio
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.82 times more return on investment than Allwin Telecommunicatio. However, Guangdong Shenglu Telecommunication is 1.22 times less risky than Allwin Telecommunicatio. It trades about 0.03 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about -0.07 per unit of risk. If you would invest 697.00 in Guangdong Shenglu Telecommunication on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Guangdong Shenglu Telecommunication or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Guangdong Shenglu |
| Allwin Telecommunicatio |
Guangdong Shenglu and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Allwin Telecommunicatio
The main advantage of trading using opposite Guangdong Shenglu and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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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