Correlation Between Tangel Publishing and Guangdong Xiongsu
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By analyzing existing cross correlation between Tangel Publishing and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Tangel Publishing and Guangdong Xiongsu 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 Tangel Publishing with a short position of Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tangel Publishing and Guangdong Xiongsu.
Diversification Opportunities for Tangel Publishing and Guangdong Xiongsu
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tangel and Guangdong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tangel Publishing and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu and Tangel Publishing 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 Tangel Publishing are associated (or correlated) with Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Tangel Publishing i.e., Tangel Publishing and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Tangel Publishing and Guangdong Xiongsu
Assuming the 90 days trading horizon Tangel Publishing is expected to generate 1.27 times more return on investment than Guangdong Xiongsu. However, Tangel Publishing is 1.27 times more volatile than Guangdong Xiongsu Technology. It trades about 0.07 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.26 per unit of risk. If you would invest 380.00 in Tangel Publishing on October 30, 2024 and sell it today you would earn a total of 15.00 from holding Tangel Publishing or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tangel Publishing vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Tangel Publishing |
| Guangdong Xiongsu |
Tangel Publishing and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tangel Publishing and Guangdong Xiongsu
The main advantage of trading using opposite Tangel Publishing and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tangel Publishing position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Tangel Publishing vs. Fuzhou Rockchip Electronics | Tangel Publishing vs. Ningbo Kangqiang Electronics | Tangel Publishing vs. Liaoning Dingjide Petrochemical | Tangel Publishing vs. Leyard Optoelectronic |
| Guangdong Xiongsu vs. Jiangxi Hengda Hi Tech | Guangdong Xiongsu vs. China Sports Industry | Guangdong Xiongsu vs. Beijing Seeyon Internet | Guangdong Xiongsu vs. Kuang Chi Technologies |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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