Correlation Between Guangdong Qunxing and Sichuan Hebang
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Guangdong Qunxing and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Sichuan Hebang.
Diversification Opportunities for Guangdong Qunxing and Sichuan Hebang
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Sichuan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Sichuan Hebang
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.67 times more return on investment than Sichuan Hebang. However, Guangdong Qunxing is 1.67 times more volatile than Sichuan Hebang Biotechnology. It trades about 0.28 of its potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.1 per unit of risk. If you would invest 564.00 in Guangdong Qunxing Toys on September 5, 2024 and sell it today you would earn a total of 125.00 from holding Guangdong Qunxing Toys or generate 22.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Sichuan Hebang Biote |
Guangdong Qunxing and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Sichuan Hebang
The main advantage of trading using opposite Guangdong Qunxing and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's long position.| Guangdong Qunxing vs. BeiGene | Guangdong Qunxing vs. Kweichow Moutai Co | Guangdong Qunxing vs. Beijing Roborock Technology | Guangdong Qunxing vs. G bits Network Technology |
| Sichuan Hebang vs. Vanfund Urban Investment | Sichuan Hebang vs. Jointo Energy Investment | Sichuan Hebang vs. Yindu Kitchen Equipment | Sichuan Hebang vs. Tieling Newcity Investment |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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