Correlation Between Guilin Seamild and Advanced Technology
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By analyzing existing cross correlation between Guilin Seamild Foods and Advanced Technology Materials, you can compare the effects of market volatilities on Guilin Seamild and Advanced Technology 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 Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Advanced Technology.
Diversification Opportunities for Guilin Seamild and Advanced Technology
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guilin and Advanced is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology 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 Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Advanced Technology go up and down completely randomly.
Pair Corralation between Guilin Seamild and Advanced Technology
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to under-perform the Advanced Technology. In addition to that, Guilin Seamild is 1.28 times more volatile than Advanced Technology Materials. It trades about -0.18 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about -0.08 per unit of volatility. If you would invest 1,146 in Advanced Technology Materials on October 16, 2024 and sell it today you would lose (55.00) from holding Advanced Technology Materials or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Advanced Technology Materials
Performance |
| Timeline |
| Guilin Seamild Foods |
| Advanced Technology |
Guilin Seamild and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Advanced Technology
The main advantage of trading using opposite Guilin Seamild and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Guilin Seamild vs. Hunan Investment Group | Guilin Seamild vs. Jiangsu Yueda Investment | Guilin Seamild vs. Porton Fine Chemicals | Guilin Seamild vs. Hubei Xingfa Chemicals |
| Advanced Technology vs. East Money Information | Advanced Technology vs. Sublime China Information | Advanced Technology vs. Invengo Information Technology | Advanced Technology vs. Impulse Qingdao Health |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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