Correlation Between Guangdong Shenglu and China Publishing
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and China Publishing Media, you can compare the effects of market volatilities on Guangdong Shenglu and China 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 China Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and China Publishing.
Diversification Opportunities for Guangdong Shenglu and China Publishing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and China is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and China Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China 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 China Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Publishing Media has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and China Publishing go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and China Publishing
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 1.17 times less return on investment than China Publishing. But when comparing it to its historical volatility, Guangdong Shenglu Telecommunication is 1.02 times less risky than China Publishing. It trades about 0.06 of its potential returns per unit of risk. China Publishing Media is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 604.00 in China Publishing Media on September 27, 2024 and sell it today you would earn a total of 150.00 from holding China Publishing Media or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. China Publishing Media
Performance |
| Timeline |
| Guangdong Shenglu |
| China Publishing Media |
Guangdong Shenglu and China Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and China Publishing
The main advantage of trading using opposite Guangdong Shenglu and China Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, China 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 China Publishing will offset losses from the drop in China Publishing's long position.| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Bank of China |
| China Publishing vs. PetroChina Co Ltd | China Publishing vs. China Mobile Limited | China Publishing vs. CNOOC Limited | China Publishing vs. Ping An Insurance |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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