Correlation Between Guangdong Shenglu and Guangdong Wens
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Guangdong Shenglu and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Guangdong Wens.
Diversification Opportunities for Guangdong Shenglu and Guangdong Wens
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Guangdong is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Guangdong Wens go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Guangdong Wens
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Guangdong Wens. In addition to that, Guangdong Shenglu is 1.54 times more volatile than Guangdong Wens Foodstuff. It trades about -0.02 of its total potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about 0.0 per unit of volatility. If you would invest 1,833 in Guangdong Wens Foodstuff on September 26, 2024 and sell it today you would lose (143.00) from holding Guangdong Wens Foodstuff or give up 7.8% 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. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Guangdong Shenglu |
| Guangdong Wens Foodstuff |
Guangdong Shenglu and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Guangdong Wens
The main advantage of trading using opposite Guangdong Shenglu and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Guangdong Shenglu vs. Dongfeng Automobile Co | Guangdong Shenglu vs. China Mobile Limited | Guangdong Shenglu vs. Railway Signal Communication | Guangdong Shenglu vs. Dareway Software Co |
| Guangdong Wens vs. Ming Yang Smart | Guangdong Wens vs. 159681 | Guangdong Wens vs. 159005 | Guangdong Wens vs. Loctek Ergonomic 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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