Correlation Between Guangzhou Zhujiang and Thunder Software
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Thunder Software Technology, you can compare the effects of market volatilities on Guangzhou Zhujiang and Thunder Software 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 Thunder Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Thunder Software.
Diversification Opportunities for Guangzhou Zhujiang and Thunder Software
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Thunder is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Thunder Software Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Software Tec 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 Thunder Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Software Tec has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Thunder Software go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Thunder Software
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.41 times more return on investment than Thunder Software. However, Guangzhou Zhujiang Brewery is 2.45 times less risky than Thunder Software. It trades about -0.18 of its potential returns per unit of risk. Thunder Software Technology is currently generating about -0.31 per unit of risk. If you would invest 967.00 in Guangzhou Zhujiang Brewery on October 21, 2024 and sell it today you would lose (46.00) from holding Guangzhou Zhujiang Brewery or give up 4.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Thunder Software Technology
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Thunder Software Tec |
Guangzhou Zhujiang and Thunder Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Thunder Software
The main advantage of trading using opposite Guangzhou Zhujiang and Thunder Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Thunder Software 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 Thunder Software will offset losses from the drop in Thunder Software's long position.| Guangzhou Zhujiang vs. Tonghua Grape Wine | Guangzhou Zhujiang vs. SSAW Hotels Resorts | Guangzhou Zhujiang vs. Guangdong Qunxing Toys | Guangzhou Zhujiang vs. BTG Hotels Group |
| Thunder Software vs. Guangzhou Zhujiang Brewery | Thunder Software vs. Qingdao Haier Biomedical | Thunder Software vs. Servyou Software Group | Thunder Software vs. Eastroc Beverage Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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