Correlation Between Guangzhou Ruoyuchen and Shandong Polymer
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Shandong Polymer.
Diversification Opportunities for Guangzhou Ruoyuchen and Shandong Polymer
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangzhou and Shandong is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Shandong Polymer go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Shandong Polymer
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.46 times more return on investment than Shandong Polymer. However, Guangzhou Ruoyuchen is 1.46 times more volatile than Shandong Polymer Biochemicals. It trades about 0.24 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.03 per unit of risk. If you would invest 1,422 in Guangzhou Ruoyuchen Information on October 14, 2024 and sell it today you would earn a total of 1,258 from holding Guangzhou Ruoyuchen Information or generate 88.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Shandong Polymer Bio |
Guangzhou Ruoyuchen and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Shandong Polymer
The main advantage of trading using opposite Guangzhou Ruoyuchen and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.| Guangzhou Ruoyuchen vs. Anhui Jianghuai Automobile | Guangzhou Ruoyuchen vs. CIMC Vehicles Co | Guangzhou Ruoyuchen vs. Union Semiconductor Co | Guangzhou Ruoyuchen vs. Will Semiconductor Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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