Correlation Between Shanghai Yaoji and Guangxi Wuzhou
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Shanghai Yaoji and Guangxi Wuzhou 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 Shanghai Yaoji with a short position of Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Guangxi Wuzhou.
Diversification Opportunities for Shanghai Yaoji and Guangxi Wuzhou
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shanghai and Guangxi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu and Shanghai Yaoji 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 Shanghai Yaoji Playing are associated (or correlated) with Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Guangxi Wuzhou
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.59 times more return on investment than Guangxi Wuzhou. However, Shanghai Yaoji is 1.59 times more volatile than Guangxi Wuzhou Communications. It trades about 0.05 of its potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.03 per unit of risk. If you would invest 1,553 in Shanghai Yaoji Playing on November 2, 2024 and sell it today you would earn a total of 1,244 from holding Shanghai Yaoji Playing or generate 80.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Guangxi Wuzhou Commu |
Shanghai Yaoji and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Guangxi Wuzhou
The main advantage of trading using opposite Shanghai Yaoji and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Shanghai Yaoji vs. China Life Insurance | Shanghai Yaoji vs. National Silicon Industry | Shanghai Yaoji vs. Shanghai OPM Biosciences | Shanghai Yaoji vs. Nanhua Bio Medicine |
| Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. Kweichow Moutai Co | Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. China Mobile Limited |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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