Correlation Between Songz Automobile and Guangdong Shenglu
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By analyzing existing cross correlation between Songz Automobile Air and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Songz Automobile and Guangdong Shenglu 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 Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Guangdong Shenglu.
Diversification Opportunities for Songz Automobile and Guangdong Shenglu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Songz Automobile i.e., Songz Automobile and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Songz Automobile and Guangdong Shenglu
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.82 times more return on investment than Guangdong Shenglu. However, Songz Automobile Air is 1.21 times less risky than Guangdong Shenglu. It trades about 0.14 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.01 per unit of risk. If you would invest 651.00 in Songz Automobile Air on August 29, 2024 and sell it today you would earn a total of 48.00 from holding Songz Automobile Air or generate 7.37% return on investment 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 Shenglu Telecommunic
Performance |
| Timeline |
| Songz Automobile Air |
| Guangdong Shenglu |
Songz Automobile and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Guangdong Shenglu
The main advantage of trading using opposite Songz Automobile and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Guangdong Shenglu 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 Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Songz Automobile vs. Loongson Technology Corp | Songz Automobile vs. Chongqing Road Bridge | Songz Automobile vs. Shenzhen Fortune Trend | Songz Automobile vs. Wuhan Xianglong Power |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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