Correlation Between Guangdong Shenglu and HMTNew Technical
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and HMTNew Technical, you can compare the effects of market volatilities on Guangdong Shenglu and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and HMTNew Technical.
Diversification Opportunities for Guangdong Shenglu and HMTNew Technical
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and HMTNew is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and HMTNew Technical go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and HMTNew Technical
Assuming the 90 days trading horizon Guangdong Shenglu is expected to generate 4.1 times less return on investment than HMTNew Technical. But when comparing it to its historical volatility, Guangdong Shenglu Telecommunication is 1.08 times less risky than HMTNew Technical. It trades about 0.0 of its potential returns per unit of risk. HMTNew Technical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,752 in HMTNew Technical on September 12, 2024 and sell it today you would lose (702.00) from holding HMTNew Technical or give up 18.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. HMTNew Technical
Performance |
| Timeline |
| Guangdong Shenglu |
| HMTNew Technical |
Guangdong Shenglu and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and HMTNew Technical
The main advantage of trading using opposite Guangdong Shenglu and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Guangdong Shenglu vs. Gansu Jiu Steel | Guangdong Shenglu vs. Shandong Mining Machinery | Guangdong Shenglu vs. Aba Chemicals Corp | Guangdong Shenglu vs. BlueFocus Communication Group |
| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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