Correlation Between Guangdong Shenglu and Cowealth Medical
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Cowealth Medical China, you can compare the effects of market volatilities on Guangdong Shenglu and Cowealth Medical 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 Cowealth Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Cowealth Medical.
Diversification Opportunities for Guangdong Shenglu and Cowealth Medical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Cowealth is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Cowealth Medical China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cowealth Medical China 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 Cowealth Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cowealth Medical China has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Cowealth Medical go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Cowealth Medical
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.74 times more return on investment than Cowealth Medical. However, Guangdong Shenglu Telecommunication is 1.35 times less risky than Cowealth Medical. It trades about 0.08 of its potential returns per unit of risk. Cowealth Medical China is currently generating about -0.05 per unit of risk. If you would invest 698.00 in Guangdong Shenglu Telecommunication on September 3, 2024 and sell it today you would earn a total of 28.00 from holding Guangdong Shenglu Telecommunication or generate 4.01% 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. Cowealth Medical China
Performance |
| Timeline |
| Guangdong Shenglu |
| Cowealth Medical China |
Guangdong Shenglu and Cowealth Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Cowealth Medical
The main advantage of trading using opposite Guangdong Shenglu and Cowealth Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Cowealth Medical 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 Cowealth Medical will offset losses from the drop in Cowealth Medical's long position.| Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Construction Bank | Guangdong Shenglu vs. Postal Savings Bank | Guangdong Shenglu vs. Bank of Communications |
| Cowealth Medical vs. Zoy Home Furnishing | Cowealth Medical vs. Mengtian Home Group | Cowealth Medical vs. Guangdong Silvere Sci | Cowealth Medical vs. Luolai Home Textile |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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