Correlation Between Guangdong Shenglu and Success Electronics
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Success Electronics, you can compare the effects of market volatilities on Guangdong Shenglu and Success Electronics 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 Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Success Electronics.
Diversification Opportunities for Guangdong Shenglu and Success Electronics
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Success is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics 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 Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Success Electronics go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Success Electronics
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Success Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.01 times less risky than Success Electronics. The stock trades about -0.18 of its potential returns per unit of risk. The Success Electronics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 385.00 in Success Electronics on October 30, 2024 and sell it today you would lose (3.00) from holding Success Electronics or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Success Electronics
Performance |
| Timeline |
| Guangdong Shenglu |
| Success Electronics |
Guangdong Shenglu and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Success Electronics
The main advantage of trading using opposite Guangdong Shenglu and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Guangdong Shenglu vs. Jiangsu Yueda Investment | Guangdong Shenglu vs. Shandong Longquan Pipeline | Guangdong Shenglu vs. Zoje Resources Investment | Guangdong Shenglu vs. Zhejiang Kingland Pipeline |
| Success Electronics vs. Citic Offshore Helicopter | Success Electronics vs. Duzhe Publishing Media | Success Electronics vs. Jiangsu Phoenix Publishing | Success Electronics vs. Thunder Software Technology |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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