Correlation Between Songz Automobile and Guangzhou Shiyuan
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By analyzing existing cross correlation between Songz Automobile Air and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Songz Automobile and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and Guangzhou Shiyuan.
Diversification Opportunities for Songz Automobile and Guangzhou Shiyuan
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songz and Guangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Songz Automobile i.e., Songz Automobile and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Songz Automobile and Guangzhou Shiyuan
Assuming the 90 days trading horizon Songz Automobile Air is expected to generate 0.81 times more return on investment than Guangzhou Shiyuan. However, Songz Automobile Air is 1.23 times less risky than Guangzhou Shiyuan. It trades about 0.1 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.05 per unit of risk. If you would invest 549.00 in Songz Automobile Air on November 2, 2024 and sell it today you would earn a total of 120.00 from holding Songz Automobile Air or generate 21.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Songz Automobile Air |
| Guangzhou Shiyuan |
Songz Automobile and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and Guangzhou Shiyuan
The main advantage of trading using opposite Songz Automobile and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Songz Automobile vs. Jiangyin Jianghua Microelectronics | Songz Automobile vs. Sunwoda Electronic | Songz Automobile vs. Tonghua Grape Wine | Songz Automobile vs. JuneYao Dairy Co |
| Guangzhou Shiyuan vs. YiDong Electronics Technology | Guangzhou Shiyuan vs. Shenzhen Clou Electronics | Guangzhou Shiyuan vs. Xizi Clean Energy | Guangzhou Shiyuan vs. Semiconductor Manufacturing Electronics |
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.
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