Correlation Between Guilin Seamild and Duzhe Publishing
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By analyzing existing cross correlation between Guilin Seamild Foods and Duzhe Publishing Media, you can compare the effects of market volatilities on Guilin Seamild and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Duzhe Publishing.
Diversification Opportunities for Guilin Seamild and Duzhe Publishing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guilin and Duzhe is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Guilin Seamild and Duzhe Publishing
Assuming the 90 days trading horizon Guilin Seamild is expected to generate 3.21 times less return on investment than Duzhe Publishing. But when comparing it to its historical volatility, Guilin Seamild Foods is 1.29 times less risky than Duzhe Publishing. It trades about 0.01 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 551.00 in Duzhe Publishing Media on September 3, 2024 and sell it today you would earn a total of 79.00 from holding Duzhe Publishing Media or generate 14.34% 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. Duzhe Publishing Media
Performance |
| Timeline |
| Guilin Seamild Foods |
| Duzhe Publishing Media |
Guilin Seamild and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Duzhe Publishing
The main advantage of trading using opposite Guilin Seamild and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| Guilin Seamild vs. Beijing Wantai Biological | Guilin Seamild vs. Aluminum Corp of | Guilin Seamild vs. COL Digital Publishing | Guilin Seamild vs. Shaanxi Meineng Clean |
| Duzhe Publishing vs. Gansu Jiu Steel | Duzhe Publishing vs. Ming Yang Smart | Duzhe Publishing vs. Aba Chemicals Corp | Duzhe Publishing vs. Loctek Ergonomic Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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