Correlation Between Guilin Seamild and Gansu Yasheng
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By analyzing existing cross correlation between Guilin Seamild Foods and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Guilin Seamild and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Gansu Yasheng.
Diversification Opportunities for Guilin Seamild and Gansu Yasheng
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guilin and Gansu is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Guilin Seamild and Gansu Yasheng
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.44 times more return on investment than Gansu Yasheng. However, Guilin Seamild is 1.44 times more volatile than Gansu Yasheng Industrial. It trades about 0.1 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.12 per unit of risk. If you would invest 1,562 in Guilin Seamild Foods on October 23, 2024 and sell it today you would earn a total of 78.00 from holding Guilin Seamild Foods or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Guilin Seamild Foods |
| Gansu Yasheng Industrial |
Guilin Seamild and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Gansu Yasheng
The main advantage of trading using opposite Guilin Seamild and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Guilin Seamild vs. Cambricon Technologies Corp | Guilin Seamild vs. SGSG Sciencetechnology Co | Guilin Seamild vs. Loongson Technology Corp | Guilin Seamild vs. Jiangsu Flowers King |
| Gansu Yasheng vs. Shuhua Sports Co | Gansu Yasheng vs. Sportsoul Co Ltd | Gansu Yasheng vs. Liaoning Chengda Biotechnology | Gansu Yasheng vs. Fujian Wanchen Biotechnology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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