Correlation Between 159681 and Guangzhou Seagull
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on 159681 and Guangzhou Seagull 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 159681 with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Guangzhou Seagull.
Diversification Opportunities for 159681 and Guangzhou Seagull
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 159681 and Guangzhou is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and 159681 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 159681 are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of 159681 i.e., 159681 and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between 159681 and Guangzhou Seagull
Assuming the 90 days trading horizon 159681 is expected to generate 0.84 times more return on investment than Guangzhou Seagull. However, 159681 is 1.19 times less risky than Guangzhou Seagull. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about -0.02 per unit of risk. If you would invest 100.00 in 159681 on September 5, 2024 and sell it today you would lose (2.00) from holding 159681 or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.16% |
| Values | Daily Returns |
159681 vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| 159681 |
| Guangzhou Seagull Kitchen |
159681 and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Guangzhou Seagull
The main advantage of trading using opposite 159681 and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.The idea behind 159681 and Guangzhou Seagull Kitchen pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Guangzhou Seagull vs. Ming Yang Smart | Guangzhou Seagull vs. 159681 | Guangzhou Seagull vs. 159005 | Guangzhou Seagull vs. Loctek Ergonomic Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |