Correlation Between Guilin Seamild and China Securities
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By analyzing existing cross correlation between Guilin Seamild Foods and China Securities 800, you can compare the effects of market volatilities on Guilin Seamild and China Securities 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 Guilin Seamild with a short position of China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and China Securities.
Diversification Opportunities for Guilin Seamild and China Securities
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guilin and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 and Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and China Securities go up and down completely randomly.
Pair Corralation between Guilin Seamild and China Securities
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 1.3 times less return on investment than China Securities. In addition to that, Guilin Seamild is 1.55 times more volatile than China Securities 800. It trades about 0.02 of its total potential returns per unit of risk. China Securities 800 is currently generating about 0.04 per unit of volatility. If you would invest 396,725 in China Securities 800 on September 3, 2024 and sell it today you would earn a total of 26,811 from holding China Securities 800 or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. China Securities 800
Performance |
| Timeline |
Guilin Seamild and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Guilin Seamild Foods
Pair trading matchups for Guilin Seamild
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Guilin Seamild and China Securities
The main advantage of trading using opposite Guilin Seamild and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Guilin Seamild vs. Beijing Wantai Biological | Guilin Seamild vs. Aluminum Corp of | Guilin Seamild vs. COL Digital Publishing | Guilin Seamild vs. Shaanxi Meineng Clean |
| China Securities vs. Guilin Seamild Foods | China Securities vs. HaiXin Foods Co | China Securities vs. Zhejiang Publishing Media | China Securities vs. Eastroc Beverage Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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