Correlation Between Guilin Seamild and Shanghai Laimu
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By analyzing existing cross correlation between Guilin Seamild Foods and Shanghai Laimu Electronics, you can compare the effects of market volatilities on Guilin Seamild and Shanghai Laimu 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 Shanghai Laimu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Shanghai Laimu.
Diversification Opportunities for Guilin Seamild and Shanghai Laimu
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guilin and Shanghai is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Shanghai Laimu Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Laimu Elect 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 Shanghai Laimu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Laimu Elect has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Shanghai Laimu go up and down completely randomly.
Pair Corralation between Guilin Seamild and Shanghai Laimu
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.76 times more return on investment than Shanghai Laimu. However, Guilin Seamild Foods is 1.31 times less risky than Shanghai Laimu. It trades about 0.28 of its potential returns per unit of risk. Shanghai Laimu Electronics is currently generating about 0.17 per unit of risk. If you would invest 1,253 in Guilin Seamild Foods on September 13, 2024 and sell it today you would earn a total of 348.00 from holding Guilin Seamild Foods or generate 27.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Shanghai Laimu Electronics
Performance |
| Timeline |
| Guilin Seamild Foods |
| Shanghai Laimu Elect |
Guilin Seamild and Shanghai Laimu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Shanghai Laimu
The main advantage of trading using opposite Guilin Seamild and Shanghai Laimu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Shanghai Laimu 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 Shanghai Laimu will offset losses from the drop in Shanghai Laimu's long position.| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Kangyue Technology Co | Guilin Seamild vs. Shenzhen Hifuture Electric |
| Shanghai Laimu vs. Jiujiang Shanshui Technology | Shanghai Laimu vs. Kuang Chi Technologies | Shanghai Laimu vs. Xiwang Foodstuffs Co | Shanghai Laimu vs. Guilin Seamild Foods |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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