Correlation Between Guangdong Shenglu and Anhui Tongguan
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Anhui Tongguan Copper, you can compare the effects of market volatilities on Guangdong Shenglu and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Anhui Tongguan.
Diversification Opportunities for Guangdong Shenglu and Anhui Tongguan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Anhui is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Anhui Tongguan
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 1.13 times less return on investment than Anhui Tongguan. In addition to that, Guangdong Shenglu is 1.12 times more volatile than Anhui Tongguan Copper. It trades about 0.04 of its total potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.05 per unit of volatility. If you would invest 1,085 in Anhui Tongguan Copper on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Anhui Tongguan Copper or generate 2.12% 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. Anhui Tongguan Copper
Performance |
| Timeline |
| Guangdong Shenglu |
| Anhui Tongguan Copper |
Guangdong Shenglu and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Anhui Tongguan
The main advantage of trading using opposite Guangdong Shenglu and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Guangdong Shenglu vs. Guocheng Mining Co | Guangdong Shenglu vs. Beijing SPC Environment | Guangdong Shenglu vs. Uroica Mining Safety | Guangdong Shenglu vs. Tongxing Environmental Protection |
| Anhui Tongguan vs. Industrial and Commercial | Anhui Tongguan vs. Kweichow Moutai Co | Anhui Tongguan vs. Agricultural Bank of | Anhui Tongguan vs. China Mobile Limited |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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