Correlation Between Guangdong Qunxing and China Resources
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By analyzing existing cross correlation between Guangdong Qunxing Toys and China Resources Boya, you can compare the effects of market volatilities on Guangdong Qunxing and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and China Resources.
Diversification Opportunities for Guangdong Qunxing and China Resources
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and China is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and China Resources Boya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Boya 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Boya has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and China Resources go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and China Resources
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 4.22 times more return on investment than China Resources. However, Guangdong Qunxing is 4.22 times more volatile than China Resources Boya. It trades about -0.03 of its potential returns per unit of risk. China Resources Boya is currently generating about -0.25 per unit of risk. If you would invest 701.00 in Guangdong Qunxing Toys on October 22, 2024 and sell it today you would lose (32.00) from holding Guangdong Qunxing Toys or give up 4.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. China Resources Boya
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| China Resources Boya |
Guangdong Qunxing and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and China Resources
The main advantage of trading using opposite Guangdong Qunxing and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Guangdong Qunxing vs. Weihai Honglin Electronic | Guangdong Qunxing vs. Xizi Clean Energy | Guangdong Qunxing vs. Fuzhou Rockchip Electronics | Guangdong Qunxing vs. Guangzhou Restaurants Group |
| China Resources vs. Guangdong Qunxing Toys | China Resources vs. Sinomach Automobile Co | China Resources vs. Shenzhen MYS Environmental | China Resources vs. Xiangyang Automobile Bearing |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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