Correlation Between Guangzhou Ruoyuchen and Changshu Tongrun
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Changshu Tongrun Auto, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Changshu Tongrun 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 Changshu Tongrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Changshu Tongrun.
Diversification Opportunities for Guangzhou Ruoyuchen and Changshu Tongrun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Changshu is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Changshu Tongrun Auto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changshu Tongrun Auto 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 Changshu Tongrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changshu Tongrun Auto has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Changshu Tongrun go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Changshu Tongrun
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.28 times more return on investment than Changshu Tongrun. However, Guangzhou Ruoyuchen is 1.28 times more volatile than Changshu Tongrun Auto. It trades about 0.46 of its potential returns per unit of risk. Changshu Tongrun Auto is currently generating about 0.06 per unit of risk. If you would invest 1,445 in Guangzhou Ruoyuchen Information on September 2, 2024 and sell it today you would earn a total of 852.00 from holding Guangzhou Ruoyuchen Information or generate 58.96% 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. Changshu Tongrun Auto
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Changshu Tongrun Auto |
Guangzhou Ruoyuchen and Changshu Tongrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Changshu Tongrun
The main advantage of trading using opposite Guangzhou Ruoyuchen and Changshu Tongrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Changshu Tongrun 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 Changshu Tongrun will offset losses from the drop in Changshu Tongrun's long position.| Guangzhou Ruoyuchen vs. Ming Yang Smart | Guangzhou Ruoyuchen vs. 159681 | Guangzhou Ruoyuchen vs. 159005 | Guangzhou Ruoyuchen vs. Loctek Ergonomic Technology |
| Changshu Tongrun vs. Agricultural Bank of | Changshu Tongrun vs. Unisplendour Corp | Changshu Tongrun vs. Zhongtong Guomai Communication | Changshu Tongrun vs. GRG Banking Equipment |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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