Correlation Between Guangdong Shenglu and Zhejiang Publishing
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Zhejiang Publishing Media, you can compare the effects of market volatilities on Guangdong Shenglu and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Zhejiang Publishing.
Diversification Opportunities for Guangdong Shenglu and Zhejiang Publishing
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Zhejiang is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Zhejiang Publishing
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Zhejiang Publishing. In addition to that, Guangdong Shenglu is 1.2 times more volatile than Zhejiang Publishing Media. It trades about -0.02 of its total potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.01 per unit of volatility. If you would invest 779.00 in Zhejiang Publishing Media on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Zhejiang Publishing Media or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Zhejiang Publishing Media
Performance |
| Timeline |
| Guangdong Shenglu |
| Zhejiang Publishing Media |
Guangdong Shenglu and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Zhejiang Publishing
The main advantage of trading using opposite Guangdong Shenglu and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| Guangdong Shenglu vs. China State Construction | Guangdong Shenglu vs. Huafa Industrial Co | Guangdong Shenglu vs. China International Capital | Guangdong Shenglu vs. Kweichow Moutai Co |
| Zhejiang Publishing vs. Industrial and Commercial | Zhejiang Publishing vs. Agricultural Bank of | Zhejiang Publishing vs. China Construction Bank | Zhejiang Publishing vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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