Correlation Between Guangzhou Zhujiang and Vohringer Home
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Vohringer Home Technology, you can compare the effects of market volatilities on Guangzhou Zhujiang and Vohringer Home 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 Vohringer Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Vohringer Home.
Diversification Opportunities for Guangzhou Zhujiang and Vohringer Home
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Vohringer is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Vohringer Home Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vohringer Home Technology 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 Vohringer Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vohringer Home Technology has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Vohringer Home go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Vohringer Home
Assuming the 90 days trading horizon Guangzhou Zhujiang is expected to generate 6.57 times less return on investment than Vohringer Home. But when comparing it to its historical volatility, Guangzhou Zhujiang Brewery is 2.17 times less risky than Vohringer Home. It trades about 0.07 of its potential returns per unit of risk. Vohringer Home Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 423.00 in Vohringer Home Technology on September 1, 2024 and sell it today you would earn a total of 72.00 from holding Vohringer Home Technology or generate 17.02% 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. Vohringer Home Technology
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Vohringer Home Technology |
Guangzhou Zhujiang and Vohringer Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Vohringer Home
The main advantage of trading using opposite Guangzhou Zhujiang and Vohringer Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Vohringer Home 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 Vohringer Home will offset losses from the drop in Vohringer Home's long position.| Guangzhou Zhujiang vs. Shanghai Metersbonwe FashionAccessories | Guangzhou Zhujiang vs. Xiwang Foodstuffs Co | Guangzhou Zhujiang vs. JuneYao Dairy Co | Guangzhou Zhujiang vs. Xiamen Jihong Package |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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