Correlation Between Guangzhou Zhujiang and Saurer Intelligent
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Saurer Intelligent Technology, you can compare the effects of market volatilities on Guangzhou Zhujiang and Saurer Intelligent 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 Saurer Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Saurer Intelligent.
Diversification Opportunities for Guangzhou Zhujiang and Saurer Intelligent
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Saurer is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Saurer Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saurer Intelligent 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 Saurer Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saurer Intelligent has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Saurer Intelligent go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Saurer Intelligent
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to under-perform the Saurer Intelligent. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Zhujiang Brewery is 4.87 times less risky than Saurer Intelligent. The stock trades about -0.01 of its potential returns per unit of risk. The Saurer Intelligent Technology is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 219.00 in Saurer Intelligent Technology on September 12, 2024 and sell it today you would earn a total of 112.00 from holding Saurer Intelligent Technology or generate 51.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Saurer Intelligent Technology
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Saurer Intelligent |
Guangzhou Zhujiang and Saurer Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Saurer Intelligent
The main advantage of trading using opposite Guangzhou Zhujiang and Saurer Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Saurer Intelligent 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 Saurer Intelligent will offset losses from the drop in Saurer Intelligent's long position.| Guangzhou Zhujiang vs. China Petroleum Chemical | Guangzhou Zhujiang vs. PetroChina Co Ltd | Guangzhou Zhujiang vs. China State Construction | Guangzhou Zhujiang vs. China Railway Group |
| Saurer Intelligent vs. Agricultural Bank of | Saurer Intelligent vs. Industrial and Commercial | Saurer Intelligent vs. Bank of China | Saurer Intelligent vs. PetroChina Co Ltd |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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