Correlation Between Guangdong Qunxing and Shenzhen SDG
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Shenzhen SDG Information, you can compare the effects of market volatilities on Guangdong Qunxing and Shenzhen SDG 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 Guangdong Qunxing with a short position of Shenzhen SDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Shenzhen SDG.
Diversification Opportunities for Guangdong Qunxing and Shenzhen SDG
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Shenzhen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Shenzhen SDG Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen SDG Information and Guangdong Qunxing 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 Guangdong Qunxing Toys are associated (or correlated) with Shenzhen SDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen SDG Information has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Shenzhen SDG go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Shenzhen SDG
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 0.87 times more return on investment than Shenzhen SDG. However, Guangdong Qunxing Toys is 1.15 times less risky than Shenzhen SDG. It trades about 0.03 of its potential returns per unit of risk. Shenzhen SDG Information is currently generating about 0.0 per unit of risk. If you would invest 606.00 in Guangdong Qunxing Toys on October 11, 2024 and sell it today you would earn a total of 98.00 from holding Guangdong Qunxing Toys or generate 16.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Shenzhen SDG Information
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Shenzhen SDG Information |
Guangdong Qunxing and Shenzhen SDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Shenzhen SDG
The main advantage of trading using opposite Guangdong Qunxing and Shenzhen SDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Shenzhen SDG 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 Shenzhen SDG will offset losses from the drop in Shenzhen SDG's long position.| Guangdong Qunxing vs. Offshore Oil Engineering | Guangdong Qunxing vs. Dongfeng Automobile Co | Guangdong Qunxing vs. Easyhome New Retail | Guangdong Qunxing vs. Telling Telecommunication Holding |
| Shenzhen SDG vs. Universal Scientific Industrial | Shenzhen SDG vs. Zhongshan Public Utilities | Shenzhen SDG vs. BTG Hotels Group | Shenzhen SDG vs. Heilongjiang Transport Development |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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