Correlation Between Guangzhou Zhujiang and Zhuhai Comleader
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Zhuhai Comleader Information, you can compare the effects of market volatilities on Guangzhou Zhujiang and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Zhuhai Comleader.
Diversification Opportunities for Guangzhou Zhujiang and Zhuhai Comleader
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zhuhai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Zhuhai Comleader
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.48 times more return on investment than Zhuhai Comleader. However, Guangzhou Zhujiang Brewery is 2.09 times less risky than Zhuhai Comleader. It trades about 0.02 of its potential returns per unit of risk. Zhuhai Comleader Information is currently generating about 0.01 per unit of risk. If you would invest 857.00 in Guangzhou Zhujiang Brewery on September 4, 2024 and sell it today you would earn a total of 55.00 from holding Guangzhou Zhujiang Brewery or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Zhuhai Comleader Information
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Zhuhai Comleader Inf |
Guangzhou Zhujiang and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Zhuhai Comleader
The main advantage of trading using opposite Guangzhou Zhujiang and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader'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 |
| Zhuhai Comleader vs. Fiberhome Telecommunication Technologies | Zhuhai Comleader vs. Tongyu Communication | Zhuhai Comleader vs. Western Metal Materials | Zhuhai Comleader vs. CITIC Metal Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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