Correlation Between Guangdong Shenglu and Ningbo David
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Ningbo David Medical, you can compare the effects of market volatilities on Guangdong Shenglu and Ningbo David 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 Ningbo David. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Ningbo David.
Diversification Opportunities for Guangdong Shenglu and Ningbo David
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Ningbo is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Ningbo David Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo David Medical 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 Ningbo David. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo David Medical has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Ningbo David go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Ningbo David
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.98 times more return on investment than Ningbo David. However, Guangdong Shenglu Telecommunication is 1.02 times less risky than Ningbo David. It trades about 0.0 of its potential returns per unit of risk. Ningbo David Medical is currently generating about -0.03 per unit of risk. If you would invest 772.00 in Guangdong Shenglu Telecommunication on September 13, 2024 and sell it today you would lose (6.00) from holding Guangdong Shenglu Telecommunication or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Ningbo David Medical
Performance |
| Timeline |
| Guangdong Shenglu |
| Ningbo David Medical |
Guangdong Shenglu and Ningbo David Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Ningbo David
The main advantage of trading using opposite Guangdong Shenglu and Ningbo David positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Ningbo David 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 Ningbo David will offset losses from the drop in Ningbo David's long position.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China | Guangdong Shenglu vs. Agricultural Bank of |
| Ningbo David vs. Guangdong Brandmax Marketing | Ningbo David vs. Jiangxi Naipu Mining | Ningbo David vs. Hainan Mining Co | Ningbo David vs. Huaibei Mining Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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