Correlation Between Guangzhou Ruoyuchen and Hunan Nanling
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Hunan Nanling Industrial, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Hunan Nanling 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 Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Hunan Nanling.
Diversification Opportunities for Guangzhou Ruoyuchen and Hunan Nanling
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hunan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial 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 Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Hunan Nanling go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Hunan Nanling
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.94 times more return on investment than Hunan Nanling. However, Guangzhou Ruoyuchen is 1.94 times more volatile than Hunan Nanling Industrial. It trades about 0.38 of its potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.08 per unit of risk. If you would invest 1,459 in Guangzhou Ruoyuchen Information on August 31, 2024 and sell it today you would earn a total of 629.00 from holding Guangzhou Ruoyuchen Information or generate 43.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Hunan Nanling Industrial
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Hunan Nanling Industrial |
Guangzhou Ruoyuchen and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Hunan Nanling
The main advantage of trading using opposite Guangzhou Ruoyuchen and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| Guangzhou Ruoyuchen vs. BYD Co Ltd | Guangzhou Ruoyuchen vs. Agricultural Bank of | Guangzhou Ruoyuchen vs. Industrial and Commercial | Guangzhou Ruoyuchen vs. China State Construction |
| Hunan Nanling vs. China Publishing Media | Hunan Nanling vs. Jiangsu Phoenix Publishing | Hunan Nanling vs. Shanghai Material Trading | Hunan Nanling vs. Offcn Education 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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