Correlation Between Guangzhou Zhujiang and Centre Testing
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Centre Testing Intl, you can compare the effects of market volatilities on Guangzhou Zhujiang and Centre Testing 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 Guangzhou Zhujiang with a short position of Centre Testing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Centre Testing.
Diversification Opportunities for Guangzhou Zhujiang and Centre Testing
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Centre is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Centre Testing Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre Testing Intl and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery are associated (or correlated) with Centre Testing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre Testing Intl has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Centre Testing go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Centre Testing
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.67 times more return on investment than Centre Testing. However, Guangzhou Zhujiang Brewery is 1.5 times less risky than Centre Testing. It trades about 0.02 of its potential returns per unit of risk. Centre Testing Intl is currently generating about -0.03 per unit of risk. If you would invest 809.00 in Guangzhou Zhujiang Brewery on September 4, 2024 and sell it today you would earn a total of 103.00 from holding Guangzhou Zhujiang Brewery or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Centre Testing Intl
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Centre Testing Intl |
Guangzhou Zhujiang and Centre Testing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Centre Testing
The main advantage of trading using opposite Guangzhou Zhujiang and Centre Testing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Centre Testing 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 Centre Testing will offset losses from the drop in Centre Testing's long position.| Guangzhou Zhujiang vs. Hefei Metalforming Mach | Guangzhou Zhujiang vs. Jiangsu Yanghe Brewery | Guangzhou Zhujiang vs. Ye Chiu Metal | Guangzhou Zhujiang vs. Liuzhou Chemical Industry |
| Centre Testing vs. Xiangyang Automobile Bearing | Centre Testing vs. Shandong Publishing Media | Centre Testing vs. Changchun Faway Automobile | Centre Testing vs. Jiangsu Xinri E Vehicle |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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