Correlation Between Guilin Seamild and Chahua Modern
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By analyzing existing cross correlation between Guilin Seamild Foods and Chahua Modern Housewares, you can compare the effects of market volatilities on Guilin Seamild and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Chahua Modern.
Diversification Opportunities for Guilin Seamild and Chahua Modern
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guilin and Chahua is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Chahua Modern go up and down completely randomly.
Pair Corralation between Guilin Seamild and Chahua Modern
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Guilin Seamild Foods is 1.25 times less risky than Chahua Modern. The stock trades about -0.18 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 2,163 in Chahua Modern Housewares on October 16, 2024 and sell it today you would lose (166.00) from holding Chahua Modern Housewares or give up 7.67% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Guilin Seamild Foods |
| Chahua Modern Housewares |
Guilin Seamild and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Chahua Modern
The main advantage of trading using opposite Guilin Seamild and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's 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 |
| Chahua Modern vs. Shenyang Blue Silver | Chahua Modern vs. Tibet Huayu Mining | Chahua Modern vs. CIMC Vehicles Co | Chahua Modern vs. Anhui Jianghuai Automobile |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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