Correlation Between Guangdong Shenglu and Strait Innovation
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Strait Innovation Internet, you can compare the effects of market volatilities on Guangdong Shenglu and Strait Innovation 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 Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Strait Innovation.
Diversification Opportunities for Guangdong Shenglu and Strait Innovation
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Strait is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation 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 Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Strait Innovation go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Strait Innovation
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 2.88 times less return on investment than Strait Innovation. But when comparing it to its historical volatility, Guangdong Shenglu Telecommunication is 1.49 times less risky than Strait Innovation. It trades about 0.09 of its potential returns per unit of risk. Strait Innovation Internet is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 142.00 in Strait Innovation Internet on October 18, 2024 and sell it today you would earn a total of 123.00 from holding Strait Innovation Internet or generate 86.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Strait Innovation Internet
Performance |
| Timeline |
| Guangdong Shenglu |
| Strait Innovation |
Guangdong Shenglu and Strait Innovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Strait Innovation
The main advantage of trading using opposite Guangdong Shenglu and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation'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 |
| Strait Innovation vs. Beijing Sanyuan Foods | Strait Innovation vs. Guangdong Shenglu Telecommunication | Strait Innovation vs. Fujian Anjoy Foods | Strait Innovation vs. Wintao Communications 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 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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