Correlation Between Guangdong Electric and Chongqing Brewery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Electric Power and Chongqing Brewery Co, you can compare the effects of market volatilities on Guangdong Electric and Chongqing Brewery 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 Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Electric and Chongqing Brewery.
Diversification Opportunities for Guangdong Electric and Chongqing Brewery
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Chongqing is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Electric Power and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery 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 Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Guangdong Electric i.e., Guangdong Electric and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Guangdong Electric and Chongqing Brewery
Assuming the 90 days trading horizon Guangdong Electric Power is expected to generate 0.43 times more return on investment than Chongqing Brewery. However, Guangdong Electric Power is 2.35 times less risky than Chongqing Brewery. It trades about -0.01 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.06 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Electric Power vs. Chongqing Brewery Co
Performance |
| Timeline |
| Guangdong Electric Power |
| Chongqing Brewery |
Guangdong Electric and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Electric and Chongqing Brewery
The main advantage of trading using opposite Guangdong Electric and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Electric position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery'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 |
| Chongqing Brewery vs. Kunwu Jiuding Investment | Chongqing Brewery vs. Kingsignal Technology Co | Chongqing Brewery vs. Luyin Investment Group | Chongqing Brewery vs. Hunan Investment Group |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |