Correlation Between Guangdong Shenglu and GreenTech Environmental
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and GreenTech Environmental Co, you can compare the effects of market volatilities on Guangdong Shenglu and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and GreenTech Environmental.
Diversification Opportunities for Guangdong Shenglu and GreenTech Environmental
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and GreenTech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and GreenTech Environmental
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.59 times less risky than GreenTech Environmental. The stock trades about -0.01 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,380 in GreenTech Environmental Co on August 29, 2024 and sell it today you would earn a total of 159.00 from holding GreenTech Environmental Co or generate 11.52% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Guangdong Shenglu |
| GreenTech Environmental |
Guangdong Shenglu and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and GreenTech Environmental
The main advantage of trading using opposite Guangdong Shenglu and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
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 Positions Ratings module to 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.
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