Correlation Between Guangzhou Ruoyuchen and Jiujiang Shanshui
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Jiujiang Shanshui.
Diversification Opportunities for Guangzhou Ruoyuchen and Jiujiang Shanshui
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Jiujiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Jiujiang Shanshui
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.9 times more return on investment than Jiujiang Shanshui. However, Guangzhou Ruoyuchen is 1.9 times more volatile than Jiujiang Shanshui Technology. It trades about 0.29 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.08 per unit of risk. If you would invest 1,861 in Guangzhou Ruoyuchen Information on September 14, 2024 and sell it today you would earn a total of 530.00 from holding Guangzhou Ruoyuchen Information or generate 28.48% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Jiujiang Shanshui |
Guangzhou Ruoyuchen and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Jiujiang Shanshui
The main advantage of trading using opposite Guangzhou Ruoyuchen and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Guangzhou Ruoyuchen vs. Guilin Seamild Foods | Guangzhou Ruoyuchen vs. V V Food | Guangzhou Ruoyuchen vs. New Hope Dairy | Guangzhou Ruoyuchen vs. Shenzhen Noposion Agrochemicals |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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