Correlation Between Guangzhou Ruoyuchen and China Everbright
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and China Everbright Bank, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and China Everbright.
Diversification Opportunities for Guangzhou Ruoyuchen and China Everbright
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and China Everbright go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and China Everbright
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 3.73 times more return on investment than China Everbright. However, Guangzhou Ruoyuchen is 3.73 times more volatile than China Everbright Bank. It trades about 0.18 of its potential returns per unit of risk. China Everbright Bank is currently generating about 0.0 per unit of risk. If you would invest 2,330 in Guangzhou Ruoyuchen Information on October 12, 2024 and sell it today you would earn a total of 466.00 from holding Guangzhou Ruoyuchen Information or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. China Everbright Bank
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| China Everbright Bank |
Guangzhou Ruoyuchen and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and China Everbright
The main advantage of trading using opposite Guangzhou Ruoyuchen and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Guangzhou Ruoyuchen vs. Western Metal Materials | Guangzhou Ruoyuchen vs. Bosera CMSK Industrial | Guangzhou Ruoyuchen vs. Rising Nonferrous Metals | Guangzhou Ruoyuchen vs. Jonjee Hi tech Industrial |
| China Everbright vs. Guangzhou Dongfang Hotel | China Everbright vs. Guangzhou Ruoyuchen Information | China Everbright vs. Unisplendour Corp | China Everbright vs. ButOne Information Corp |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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