Correlation Between Guilin Seamild and Guangdong Wens
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By analyzing existing cross correlation between Guilin Seamild Foods and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Guilin Seamild and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Guangdong Wens.
Diversification Opportunities for Guilin Seamild and Guangdong Wens
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guilin and Guangdong is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Guangdong Wens go up and down completely randomly.
Pair Corralation between Guilin Seamild and Guangdong Wens
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 2.64 times more return on investment than Guangdong Wens. However, Guilin Seamild is 2.64 times more volatile than Guangdong Wens Foodstuff. It trades about 0.16 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.19 per unit of risk. If you would invest 1,324 in Guilin Seamild Foods on October 16, 2024 and sell it today you would earn a total of 283.00 from holding Guilin Seamild Foods or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Guilin Seamild Foods |
| Guangdong Wens Foodstuff |
Guilin Seamild and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Guangdong Wens
The main advantage of trading using opposite Guilin Seamild and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' 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 |
| Guangdong Wens vs. Beijing Sanyuan Foods | Guangdong Wens vs. Guilin Seamild Foods | Guangdong Wens vs. Xiamen Jihong Package | Guangdong Wens vs. Jiahe Foods Industry |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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