Correlation Between Guangdong Shenglu and Guangzhou Ruoyuchen
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Guangzhou Ruoyuchen Information, you can compare the effects of market volatilities on Guangdong Shenglu and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Guangzhou Ruoyuchen.
Diversification Opportunities for Guangdong Shenglu and Guangzhou Ruoyuchen
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Guangzhou is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Guangzhou Ruoyuchen Informatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Ruoyuchen has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Guangzhou Ruoyuchen go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Guangzhou Ruoyuchen
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Guangzhou Ruoyuchen. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.92 times less risky than Guangzhou Ruoyuchen. The stock trades about -0.2 of its potential returns per unit of risk. The Guangzhou Ruoyuchen Information is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,744 in Guangzhou Ruoyuchen Information on October 17, 2024 and sell it today you would lose (84.00) from holding Guangzhou Ruoyuchen Information or give up 3.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Guangzhou Ruoyuchen Informatio
Performance |
| Timeline |
| Guangdong Shenglu |
| Guangzhou Ruoyuchen |
Guangdong Shenglu and Guangzhou Ruoyuchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Guangzhou Ruoyuchen
The main advantage of trading using opposite Guangdong Shenglu and Guangzhou Ruoyuchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen will offset losses from the drop in Guangzhou Ruoyuchen'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 |
| Guangzhou Ruoyuchen vs. Fibocom Wireless | Guangzhou Ruoyuchen vs. Quectel Wireless Solutions | Guangzhou Ruoyuchen vs. Kangxin New Materials | Guangzhou Ruoyuchen vs. Anhui Jianghuai Automobile |
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 CEOs Directory module to screen CEOs from public companies around the world.
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