Correlation Between Songz Automobile and Guangdong Jingyi
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By analyzing existing cross correlation between Songz Automobile Air and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Songz Automobile and Guangdong Jingyi 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 Songz Automobile with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Guangdong Jingyi.
Diversification Opportunities for Songz Automobile and Guangdong Jingyi
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Songz Automobile 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 Songz Automobile Air are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Songz Automobile i.e., Songz Automobile and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Songz Automobile and Guangdong Jingyi
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.65 times more return on investment than Guangdong Jingyi. However, Songz Automobile Air is 1.55 times less risky than Guangdong Jingyi. It trades about -0.29 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.34 per unit of risk. If you would invest 708.00 in Songz Automobile Air on October 14, 2024 and sell it today you would lose (84.00) from holding Songz Automobile Air or give up 11.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Songz Automobile Air |
| Guangdong Jingyi Metal |
Songz Automobile and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Guangdong Jingyi
The main advantage of trading using opposite Songz Automobile and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Songz Automobile vs. Aurora Optoelectronics Co | Songz Automobile vs. Ningbo Kangqiang Electronics | Songz Automobile vs. Anhui Gujing Distillery | Songz Automobile vs. Leyard Optoelectronic |
| Guangdong Jingyi vs. Nanjing Putian Telecommunications | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Omnijoi Media Corp | Guangdong Jingyi vs. Songz Automobile Air |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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