Correlation Between Guilin Seamild and Western Metal
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By analyzing existing cross correlation between Guilin Seamild Foods and Western Metal Materials, you can compare the effects of market volatilities on Guilin Seamild and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Western Metal.
Diversification Opportunities for Guilin Seamild and Western Metal
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guilin and Western is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Western Metal go up and down completely randomly.
Pair Corralation between Guilin Seamild and Western Metal
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 1.66 times less return on investment than Western Metal. But when comparing it to its historical volatility, Guilin Seamild Foods is 1.04 times less risky than Western Metal. It trades about 0.02 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,456 in Western Metal Materials on September 4, 2024 and sell it today you would earn a total of 162.00 from holding Western Metal Materials or generate 11.13% 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. Western Metal Materials
Performance |
| Timeline |
| Guilin Seamild Foods |
| Western Metal Materials |
Guilin Seamild and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Western Metal
The main advantage of trading using opposite Guilin Seamild and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Guilin Seamild vs. Poly Real Estate | Guilin Seamild vs. China Vanke Co | Guilin Seamild vs. China Merchants Shekou | Guilin Seamild vs. Huafa Industrial Co |
| Western Metal vs. Techshine Electronics Co | Western Metal vs. Leaguer Shenzhen MicroElectronics | Western Metal vs. Suzhou Weizhixiang Food | Western Metal vs. Guilin Seamild Foods |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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