Correlation Between Guangdong Shenglu and Oppein Home
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Oppein Home Group, you can compare the effects of market volatilities on Guangdong Shenglu and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Oppein Home.
Diversification Opportunities for Guangdong Shenglu and Oppein Home
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Oppein is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Oppein Home go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Oppein Home
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Oppein Home. In addition to that, Guangdong Shenglu is 1.16 times more volatile than Oppein Home Group. It trades about -0.18 of its total potential returns per unit of risk. Oppein Home Group is currently generating about -0.08 per unit of volatility. If you would invest 7,200 in Oppein Home Group on October 30, 2024 and sell it today you would lose (660.00) from holding Oppein Home Group or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Oppein Home Group
Performance |
| Timeline |
| Guangdong Shenglu |
| Oppein Home Group |
Guangdong Shenglu and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Oppein Home
The main advantage of trading using opposite Guangdong Shenglu and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.| Guangdong Shenglu vs. Jiangsu Yueda Investment | Guangdong Shenglu vs. Shandong Longquan Pipeline | Guangdong Shenglu vs. Zoje Resources Investment | Guangdong Shenglu vs. Zhejiang Kingland Pipeline |
| Oppein Home vs. Cloud Live Technology | Oppein Home vs. Nanjing Putian Telecommunications | Oppein Home vs. Shenzhen Coship Electronics | Oppein Home vs. Shenzhen Hifuture Electric |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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