Correlation Between Guangzhou Ruoyuchen and Shenzhen Aisidi
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Shenzhen Aisidi 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 Shenzhen Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Shenzhen Aisidi.
Diversification Opportunities for Guangzhou Ruoyuchen and Shenzhen Aisidi
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangzhou and Shenzhen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Shenzhen Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Shenzhen Aisidi
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.07 times more return on investment than Shenzhen Aisidi. However, Guangzhou Ruoyuchen is 1.07 times more volatile than Shenzhen Aisidi Co. It trades about -0.06 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about -0.07 per unit of risk. If you would invest 2,960 in Guangzhou Ruoyuchen Information on October 25, 2024 and sell it today you would lose (237.00) from holding Guangzhou Ruoyuchen Information or give up 8.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Shenzhen Aisidi |
Guangzhou Ruoyuchen and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Shenzhen Aisidi
The main advantage of trading using opposite Guangzhou Ruoyuchen and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Shenzhen Aisidi 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 Shenzhen Aisidi will offset losses from the drop in Shenzhen Aisidi'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 |
| Shenzhen Aisidi vs. Shenwu Energy Saving | Shenzhen Aisidi vs. Shanghai Phichem Material | Shenzhen Aisidi vs. HeNan Splendor Science | Shenzhen Aisidi vs. Swancor Advanced Materials |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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