Correlation Between Chenzhou Jingui and Guangzhou Seagull
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Chenzhou Jingui and Guangzhou Seagull 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 Chenzhou Jingui with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Guangzhou Seagull.
Diversification Opportunities for Chenzhou Jingui and Guangzhou Seagull
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chenzhou and Guangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Chenzhou Jingui 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 Chenzhou Jingui Silver are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Chenzhou Jingui i.e., Chenzhou Jingui and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Guangzhou Seagull
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 0.85 times more return on investment than Guangzhou Seagull. However, Chenzhou Jingui Silver is 1.17 times less risky than Guangzhou Seagull. It trades about 0.02 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.04 per unit of risk. If you would invest 345.00 in Chenzhou Jingui Silver on October 16, 2024 and sell it today you would earn a total of 4.00 from holding Chenzhou Jingui Silver or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenzhou Jingui Silver vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Chenzhou Jingui Silver |
| Guangzhou Seagull Kitchen |
Chenzhou Jingui and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenzhou Jingui and Guangzhou Seagull
The main advantage of trading using opposite Chenzhou Jingui and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Chenzhou Jingui vs. Guangdong Qunxing Toys | Chenzhou Jingui vs. Lecron Energy Saving | Chenzhou Jingui vs. Unisplendour Corp | Chenzhou Jingui vs. Ping An Insurance |
| Guangzhou Seagull vs. StarPower Semiconductor | Guangzhou Seagull vs. Chenzhou Jingui Silver | Guangzhou Seagull vs. Yuanjie Semiconductor Technology | Guangzhou Seagull vs. Hainan Airlines Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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