Correlation Between Guangdong Shenglu and Super Dragon
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Guangdong Shenglu and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Super Dragon.
Diversification Opportunities for Guangdong Shenglu and Super Dragon
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Super is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Super Dragon go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Super Dragon
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 1.13 times less return on investment than Super Dragon. But when comparing it to its historical volatility, Guangdong Shenglu Telecommunication is 1.07 times less risky than Super Dragon. It trades about 0.17 of its potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,340 in Super Dragon Engineering Plastics on September 13, 2024 and sell it today you would earn a total of 761.00 from holding Super Dragon Engineering Plastics or generate 22.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Super Dragon Engineering Plast
Performance |
Timeline |
Guangdong Shenglu |
Super Dragon Enginee |
Guangdong Shenglu and Super Dragon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Shenglu and Super Dragon
The main advantage of trading using opposite Guangdong Shenglu and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon'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 |
Super Dragon vs. Zhejiang JIULI Hi tech | Super Dragon vs. Qilu Bank Co | Super Dragon vs. Kuang Chi Technologies | Super Dragon vs. Guangdong Shenglu Telecommunication |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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