Correlation Between Guangdong Qunxing and Yuan Longping
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Yuan Longping High tech, you can compare the effects of market volatilities on Guangdong Qunxing and Yuan Longping 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 Yuan Longping. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Yuan Longping.
Diversification Opportunities for Guangdong Qunxing and Yuan Longping
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Yuan is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Yuan Longping High tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuan Longping High 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 Yuan Longping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuan Longping High has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Yuan Longping go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Yuan Longping
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to under-perform the Yuan Longping. In addition to that, Guangdong Qunxing is 2.49 times more volatile than Yuan Longping High tech. It trades about -0.29 of its total potential returns per unit of risk. Yuan Longping High tech is currently generating about -0.2 per unit of volatility. If you would invest 1,084 in Yuan Longping High tech on November 3, 2024 and sell it today you would lose (64.00) from holding Yuan Longping High tech or give up 5.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Yuan Longping High tech
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Yuan Longping High |
Guangdong Qunxing and Yuan Longping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Yuan Longping
The main advantage of trading using opposite Guangdong Qunxing and Yuan Longping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Yuan Longping 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 Yuan Longping will offset losses from the drop in Yuan Longping's long position.| Guangdong Qunxing vs. China Life Insurance | Guangdong Qunxing vs. National Silicon Industry | Guangdong Qunxing vs. Shanghai OPM Biosciences | Guangdong Qunxing vs. Nanhua Bio Medicine |
| Yuan Longping vs. Bus Online Co | Yuan Longping vs. Holitech Technology Co | Yuan Longping vs. Gome Telecom Equipment | Yuan Longping vs. Cultural Investment Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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