Correlation Between Guangdong Qunxing and Sunny Loan
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Sunny Loan Top, you can compare the effects of market volatilities on Guangdong Qunxing and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Sunny Loan.
Diversification Opportunities for Guangdong Qunxing and Sunny Loan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Sunny is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Sunny Loan go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Sunny Loan
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.18 times more return on investment than Sunny Loan. However, Guangdong Qunxing is 1.18 times more volatile than Sunny Loan Top. It trades about 0.19 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.11 per unit of risk. If you would invest 594.00 in Guangdong Qunxing Toys on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Guangdong Qunxing Toys or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Sunny Loan Top
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Sunny Loan Top |
Guangdong Qunxing and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Sunny Loan
The main advantage of trading using opposite Guangdong Qunxing and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Guangdong Qunxing vs. Anhui Transport Consulting | Guangdong Qunxing vs. China Publishing Media | Guangdong Qunxing vs. Western Metal Materials | Guangdong Qunxing vs. Tongling Nonferrous Metals |
| Sunny Loan vs. Elite Color Environmental | Sunny Loan vs. Shenzhen MYS Environmental | Sunny Loan vs. Chengtun Mining Group | Sunny Loan vs. Ye Chiu Metal |
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 CEOs Directory module to screen CEOs from public companies around the world.
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