Correlation Between Guangzhou Zhujiang and Xiamen ITG
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Xiamen ITG Group, you can compare the effects of market volatilities on Guangzhou Zhujiang and Xiamen ITG 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 Xiamen ITG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Xiamen ITG.
Diversification Opportunities for Guangzhou Zhujiang and Xiamen ITG
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Xiamen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Xiamen ITG Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen ITG Group 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 Xiamen ITG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen ITG Group has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Xiamen ITG go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Xiamen ITG
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 1.04 times more return on investment than Xiamen ITG. However, Guangzhou Zhujiang is 1.04 times more volatile than Xiamen ITG Group. It trades about 0.04 of its potential returns per unit of risk. Xiamen ITG Group is currently generating about 0.01 per unit of risk. If you would invest 803.00 in Guangzhou Zhujiang Brewery on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Guangzhou Zhujiang Brewery or generate 13.57% 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. Xiamen ITG Group
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Xiamen ITG Group |
Guangzhou Zhujiang and Xiamen ITG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Xiamen ITG
The main advantage of trading using opposite Guangzhou Zhujiang and Xiamen ITG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Xiamen ITG 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 Xiamen ITG will offset losses from the drop in Xiamen ITG's long position.| Guangzhou Zhujiang vs. Beijing Wantai Biological | Guangzhou Zhujiang vs. Aluminum Corp of | Guangzhou Zhujiang vs. COL Digital Publishing | Guangzhou Zhujiang vs. Shaanxi Meineng Clean |
| Xiamen ITG vs. Industrial Bank Co | Xiamen ITG vs. Panda Financial Holding | Xiamen ITG vs. Dongguan Tarry Electronics | Xiamen ITG vs. GRG Banking Equipment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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