Correlation Between Guangdong Qunxing and Invengo Information
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Invengo Information Technology, you can compare the effects of market volatilities on Guangdong Qunxing and Invengo Information 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 Invengo Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Invengo Information.
Diversification Opportunities for Guangdong Qunxing and Invengo Information
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Invengo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Invengo Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invengo 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 Invengo Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invengo Information has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Invengo Information go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Invengo Information
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to under-perform the Invengo Information. In addition to that, Guangdong Qunxing is 1.42 times more volatile than Invengo Information Technology. It trades about -0.29 of its total potential returns per unit of risk. Invengo Information Technology is currently generating about 0.03 per unit of volatility. If you would invest 542.00 in Invengo Information Technology on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Invengo Information Technology or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Invengo Information Technology
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Invengo Information |
Guangdong Qunxing and Invengo Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Invengo Information
The main advantage of trading using opposite Guangdong Qunxing and Invengo Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Invengo Information 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 Invengo Information will offset losses from the drop in Invengo Information's long position.| Guangdong Qunxing vs. New China Life | Guangdong Qunxing vs. Ming Yang Smart | Guangdong Qunxing vs. 159681 | Guangdong Qunxing vs. 159005 |
| Invengo Information vs. Chengdu Xingrong Investment | Invengo Information vs. Hengli Industrial Development | Invengo Information vs. Hunan Investment Group | Invengo Information vs. Shanghai Material Trading |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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