Correlation Between Guangdong Electric and Sportsoul
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By analyzing existing cross correlation between Guangdong Electric Power and Sportsoul Co Ltd, you can compare the effects of market volatilities on Guangdong Electric and Sportsoul 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 Guangdong Electric with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Electric and Sportsoul.
Diversification Opportunities for Guangdong Electric and Sportsoul
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Sportsoul is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Electric Power and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Guangdong Electric 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 Guangdong Electric Power are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Guangdong Electric i.e., Guangdong Electric and Sportsoul go up and down completely randomly.
Pair Corralation between Guangdong Electric and Sportsoul
Assuming the 90 days trading horizon Guangdong Electric Power is expected to generate 0.27 times more return on investment than Sportsoul. However, Guangdong Electric Power is 3.74 times less risky than Sportsoul. It trades about -0.01 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about 0.0 per unit of risk. If you would invest 210.00 in Guangdong Electric Power on October 16, 2024 and sell it today you would lose (12.00) from holding Guangdong Electric Power or give up 5.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Electric Power vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Guangdong Electric Power |
| Sportsoul |
Guangdong Electric and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Electric and Sportsoul
The main advantage of trading using opposite Guangdong Electric and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Electric position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Guangdong Electric vs. Everdisplay Optronics Shanghai | Guangdong Electric vs. Lontium Semiconductor Corp | Guangdong Electric vs. GRINM Semiconductor Materials | Guangdong Electric vs. Chongqing Brewery Co |
| Sportsoul vs. Jinsanjiang Silicon Material | Sportsoul vs. Anji Foodstuff Co | Sportsoul vs. Dosilicon Co | Sportsoul vs. Hengli Petrochemical Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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