Correlation Between Guangdong Shenglu and Sichuan Jinshi
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Guangdong Shenglu and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Sichuan Jinshi.
Diversification Opportunities for Guangdong Shenglu and Sichuan Jinshi
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Sichuan is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Sichuan Jinshi
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.01 times less risky than Sichuan Jinshi. The stock trades about -0.36 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest 747.00 in Sichuan Jinshi Technology on October 14, 2024 and sell it today you would lose (82.00) from holding Sichuan Jinshi Technology or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Guangdong Shenglu |
| Sichuan Jinshi Technology |
Guangdong Shenglu and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Sichuan Jinshi
The main advantage of trading using opposite Guangdong Shenglu and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Guangdong Shenglu vs. Harbin Hatou Investment | Guangdong Shenglu vs. Cultural Investment Holdings | Guangdong Shenglu vs. Yuanjie Semiconductor Technology | Guangdong Shenglu vs. Vanfund Urban Investment |
| Sichuan Jinshi vs. Jinxiandai Information Industry | Sichuan Jinshi vs. Sublime China Information | Sichuan Jinshi vs. Digital China Information | Sichuan Jinshi vs. Soochow Suzhou Industrial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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