Correlation Between Guilin Seamild and FSPG Hi
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By analyzing existing cross correlation between Guilin Seamild Foods and FSPG Hi Tech Co, you can compare the effects of market volatilities on Guilin Seamild and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and FSPG Hi.
Diversification Opportunities for Guilin Seamild and FSPG Hi
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guilin and FSPG is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and FSPG Hi go up and down completely randomly.
Pair Corralation between Guilin Seamild and FSPG Hi
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.23 times more return on investment than FSPG Hi. However, Guilin Seamild is 1.23 times more volatile than FSPG Hi Tech Co. It trades about -0.05 of its potential returns per unit of risk. FSPG Hi Tech Co is currently generating about -0.15 per unit of risk. If you would invest 1,658 in Guilin Seamild Foods on October 28, 2024 and sell it today you would lose (53.00) from holding Guilin Seamild Foods or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Guilin Seamild Foods |
| FSPG Hi Tech |
Guilin Seamild and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and FSPG Hi
The main advantage of trading using opposite Guilin Seamild and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Guilin Seamild vs. Kweichow Moutai Co | Guilin Seamild vs. Contemporary Amperex Technology | Guilin Seamild vs. G bits Network Technology | Guilin Seamild vs. Beijing Roborock Technology |
| FSPG Hi vs. Glodon Software Co | FSPG Hi vs. Shenzhen Noposion Agrochemicals | FSPG Hi vs. Shanghai Xinhua Media | FSPG Hi vs. China National Software |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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