Correlation Between Guilin Seamild and Liaoning Dingjide
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By analyzing existing cross correlation between Guilin Seamild Foods and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Guilin Seamild and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Liaoning Dingjide.
Diversification Opportunities for Guilin Seamild and Liaoning Dingjide
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guilin and Liaoning is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Guilin Seamild and Liaoning Dingjide
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.64 times more return on investment than Liaoning Dingjide. However, Guilin Seamild Foods is 1.57 times less risky than Liaoning Dingjide. It trades about -0.15 of its potential returns per unit of risk. Liaoning Dingjide Petrochemical is currently generating about -0.14 per unit of risk. If you would invest 1,710 in Guilin Seamild Foods on November 3, 2024 and sell it today you would lose (134.00) from holding Guilin Seamild Foods or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Guilin Seamild Foods |
| Liaoning Dingjide |
Guilin Seamild and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Liaoning Dingjide
The main advantage of trading using opposite Guilin Seamild and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Guilin Seamild vs. Hubei Xingfa Chemicals | Guilin Seamild vs. Harbin Air Conditioning | Guilin Seamild vs. Henan Shuanghui Investment | Guilin Seamild vs. MayAir Technology Co |
| Liaoning Dingjide vs. Fibocom Wireless | Liaoning Dingjide vs. Beijing Kingsoft Office | Liaoning Dingjide vs. Lutian Machinery Co | Liaoning Dingjide vs. Senci Electric Machinery |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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