Correlation Between Guangdong Qunxing and Heilongjiang Publishing
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Guangdong Qunxing and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Heilongjiang Publishing.
Diversification Opportunities for Guangdong Qunxing and Heilongjiang Publishing
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Heilongjiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Heilongjiang Publishing
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 0.87 times more return on investment than Heilongjiang Publishing. However, Guangdong Qunxing Toys is 1.14 times less risky than Heilongjiang Publishing. It trades about 0.29 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about 0.22 per unit of risk. If you would invest 558.00 in Guangdong Qunxing Toys on September 2, 2024 and sell it today you would earn a total of 127.00 from holding Guangdong Qunxing Toys or generate 22.76% 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. Heilongjiang Publishing Media
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Heilongjiang Publishing |
Guangdong Qunxing and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Heilongjiang Publishing
The main advantage of trading using opposite Guangdong Qunxing and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.| Guangdong Qunxing vs. Anhui Gujing Distillery | Guangdong Qunxing vs. Zhejiang HISUN Biomaterials | Guangdong Qunxing vs. Orinko Advanced Plastics | Guangdong Qunxing vs. Chongqing Sulian Plastic |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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