Correlation Between Geron Co and Guangdong Wens
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By analyzing existing cross correlation between Geron Co and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Geron Co and Guangdong Wens 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 Geron Co with a short position of Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geron Co and Guangdong Wens.
Diversification Opportunities for Geron Co and Guangdong Wens
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Geron and Guangdong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Geron Co and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff and Geron Co 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 Geron Co are associated (or correlated) with Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Geron Co i.e., Geron Co and Guangdong Wens go up and down completely randomly.
Pair Corralation between Geron Co and Guangdong Wens
Assuming the 90 days trading horizon Geron Co is expected to generate 1.4 times more return on investment than Guangdong Wens. However, Geron Co is 1.4 times more volatile than Guangdong Wens Foodstuff. It trades about 0.02 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.01 per unit of risk. If you would invest 1,414 in Geron Co on December 4, 2024 and sell it today you would earn a total of 180.00 from holding Geron Co or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Geron Co vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Geron Co |
| Guangdong Wens Foodstuff |
Geron Co and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geron Co and Guangdong Wens
The main advantage of trading using opposite Geron Co and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geron Co position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| Geron Co vs. Offshore Oil Engineering | Geron Co vs. Jinhe Biotechnology Co | Geron Co vs. Nanxing Furniture Machinery | Geron Co vs. Zhe Jiang Headman |
| Guangdong Wens vs. Caihong Display Devices | Guangdong Wens vs. Beijing Kingsoft Office | Guangdong Wens vs. Western Metal Materials | Guangdong Wens vs. Zhengzhou Coal Mining |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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