Correlation Between Guangzhou Ruoyuchen and Xiamen CD
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Xiamen CD, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Xiamen CD 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 Xiamen CD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Xiamen CD.
Diversification Opportunities for Guangzhou Ruoyuchen and Xiamen CD
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Xiamen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Xiamen CD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen CD 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 Xiamen CD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen CD has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Xiamen CD go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Xiamen CD
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.77 times more return on investment than Xiamen CD. However, Guangzhou Ruoyuchen is 1.77 times more volatile than Xiamen CD. It trades about 0.07 of its potential returns per unit of risk. Xiamen CD is currently generating about -0.01 per unit of risk. If you would invest 1,418 in Guangzhou Ruoyuchen Information on October 16, 2024 and sell it today you would earn a total of 1,175 from holding Guangzhou Ruoyuchen Information or generate 82.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Xiamen CD
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Xiamen CD |
Guangzhou Ruoyuchen and Xiamen CD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Xiamen CD
The main advantage of trading using opposite Guangzhou Ruoyuchen and Xiamen CD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Xiamen CD 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 Xiamen CD will offset losses from the drop in Xiamen CD's long position.| Guangzhou Ruoyuchen vs. Malion New Materials | Guangzhou Ruoyuchen vs. Guangzhou Seagull Kitchen | Guangzhou Ruoyuchen vs. Guangzhou Tinci Materials | Guangzhou Ruoyuchen vs. Jinsanjiang Silicon Material |
| Xiamen CD vs. Shandong Longquan Pipeline | Xiamen CD vs. Songz Automobile Air | Xiamen CD vs. Iat Automobile Technology | Xiamen CD vs. Guangzhou Ruoyuchen Information |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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