Correlation Between Chengdu Spaceon and Guangxi Wuzhou
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Chengdu Spaceon 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 Chengdu Spaceon with a short position of Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Guangxi Wuzhou.
Diversification Opportunities for Chengdu Spaceon and Guangxi Wuzhou
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengdu and Guangxi is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics 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 Chengdu Spaceon 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 Chengdu Spaceon Electronics 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 Chengdu Spaceon i.e., Chengdu Spaceon and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Guangxi Wuzhou
Assuming the 90 days trading horizon Chengdu Spaceon is expected to generate 15.8 times less return on investment than Guangxi Wuzhou. In addition to that, Chengdu Spaceon is 1.15 times more volatile than Guangxi Wuzhou Communications. It trades about 0.0 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.04 per unit of volatility. If you would invest 342.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 115.00 from holding Guangxi Wuzhou Communications or generate 33.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Guangxi Wuzhou Commu |
Chengdu Spaceon and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Guangxi Wuzhou
The main advantage of trading using opposite Chengdu Spaceon and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon 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.| Chengdu Spaceon vs. Guocheng Mining Co | Chengdu Spaceon vs. Bus Online Co | Chengdu Spaceon vs. Strait Innovation Internet | Chengdu Spaceon vs. Pengxin International Mining |
| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou vs. Hainan Mining 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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