Correlation Between Guilin Seamild and Vats Liquor
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By analyzing existing cross correlation between Guilin Seamild Foods and Vats Liquor Chain, you can compare the effects of market volatilities on Guilin Seamild and Vats Liquor 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 Vats Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Vats Liquor.
Diversification Opportunities for Guilin Seamild and Vats Liquor
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guilin and Vats is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Vats Liquor Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vats Liquor Chain 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 Vats Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vats Liquor Chain has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Vats Liquor go up and down completely randomly.
Pair Corralation between Guilin Seamild and Vats Liquor
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.95 times more return on investment than Vats Liquor. However, Guilin Seamild Foods is 1.05 times less risky than Vats Liquor. It trades about 0.11 of its potential returns per unit of risk. Vats Liquor Chain is currently generating about 0.01 per unit of risk. If you would invest 1,410 in Guilin Seamild Foods on October 28, 2024 and sell it today you would earn a total of 195.00 from holding Guilin Seamild Foods or generate 13.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Vats Liquor Chain
Performance |
| Timeline |
| Guilin Seamild Foods |
| Vats Liquor Chain |
Guilin Seamild and Vats Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Vats Liquor
The main advantage of trading using opposite Guilin Seamild and Vats Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Vats Liquor 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 Vats Liquor will offset losses from the drop in Vats Liquor's long position.| Guilin Seamild vs. Ningbo Kangqiang Electronics | Guilin Seamild vs. Zhonghang Electronic Measuring | Guilin Seamild vs. Weihai Honglin Electronic | Guilin Seamild vs. Ningbo Fujia Industrial |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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