Correlation Between Guizhou Chanhen and Guangzhou Zhujiang
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Guizhou Chanhen and Guangzhou Zhujiang 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 Guizhou Chanhen with a short position of Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Guangzhou Zhujiang.
Diversification Opportunities for Guizhou Chanhen and Guangzhou Zhujiang
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guizhou and Guangzhou is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Guangzhou Zhujiang
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the Guangzhou Zhujiang. In addition to that, Guizhou Chanhen is 1.73 times more volatile than Guangzhou Zhujiang Brewery. It trades about -0.22 of its total potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about -0.36 per unit of volatility. If you would invest 993.00 in Guangzhou Zhujiang Brewery on October 30, 2024 and sell it today you would lose (80.00) from holding Guangzhou Zhujiang Brewery or give up 8.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Guangzhou Zhujiang |
Guizhou Chanhen and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Guangzhou Zhujiang
The main advantage of trading using opposite Guizhou Chanhen and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Guangzhou Zhujiang 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 Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Guizhou Chanhen vs. Harbin Air Conditioning | Guizhou Chanhen vs. Jiangsu Phoenix Publishing | Guizhou Chanhen vs. Air China Ltd | Guizhou Chanhen vs. COL Digital Publishing |
| Guangzhou Zhujiang vs. Guilin Seamild Foods | Guangzhou Zhujiang vs. XinJiang GuoTong Pipeline | Guangzhou Zhujiang vs. Shanghai Jinfeng Wine | Guangzhou Zhujiang vs. HaiXin Foods 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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