Correlation Between Guangdong Shenglu and Tianjin Silvery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Tianjin Silvery Dragon, you can compare the effects of market volatilities on Guangdong Shenglu and Tianjin Silvery 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 Tianjin Silvery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Tianjin Silvery.
Diversification Opportunities for Guangdong Shenglu and Tianjin Silvery
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Tianjin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Tianjin Silvery Dragon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Silvery Dragon 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 Tianjin Silvery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Silvery Dragon has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Tianjin Silvery go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Tianjin Silvery
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Tianjin Silvery. In addition to that, Guangdong Shenglu is 1.24 times more volatile than Tianjin Silvery Dragon. It trades about -0.01 of its total potential returns per unit of risk. Tianjin Silvery Dragon is currently generating about 0.03 per unit of volatility. If you would invest 501.00 in Tianjin Silvery Dragon on August 31, 2024 and sell it today you would earn a total of 81.00 from holding Tianjin Silvery Dragon or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.78% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Tianjin Silvery Dragon
Performance |
| Timeline |
| Guangdong Shenglu |
| Tianjin Silvery Dragon |
Guangdong Shenglu and Tianjin Silvery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Tianjin Silvery
The main advantage of trading using opposite Guangdong Shenglu and Tianjin Silvery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Tianjin Silvery 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 Tianjin Silvery will offset losses from the drop in Tianjin Silvery's long position.| Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. NAURA Technology Group | Guangdong Shenglu vs. APT Medical | Guangdong Shenglu vs. Contemporary Amperex Technology |
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.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets |