Correlation Between Guangzhou Ruoyuchen and Xian International
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Xian International Medical, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Xian International 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 Guangzhou Ruoyuchen with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Xian International.
Diversification Opportunities for Guangzhou Ruoyuchen and Xian International
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Xian is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Guangzhou Ruoyuchen 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 Guangzhou Ruoyuchen Information are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Xian International go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Xian International
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.0 times more return on investment than Xian International. However, Guangzhou Ruoyuchen Information is 1.0 times less risky than Xian International. It trades about 0.26 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.14 per unit of risk. If you would invest 1,181 in Guangzhou Ruoyuchen Information on August 29, 2024 and sell it today you would earn a total of 899.00 from holding Guangzhou Ruoyuchen Information or generate 76.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Xian International Medical
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Xian International |
Guangzhou Ruoyuchen and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Xian International
The main advantage of trading using opposite Guangzhou Ruoyuchen and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Guangzhou Ruoyuchen vs. Industrial and Commercial | Guangzhou Ruoyuchen vs. Agricultural Bank of | Guangzhou Ruoyuchen vs. China Construction Bank | Guangzhou Ruoyuchen vs. Bank of China |
| Xian International vs. Yangmei Chemical Co | Xian International vs. Longxing Chemical Stock | Xian International vs. Guangzhou Jointas Chemical | Xian International vs. Ningxia Younglight Chemicals |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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