Correlation Between Guangdong Silvere and ZJBC Information
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By analyzing existing cross correlation between Guangdong Silvere Sci and ZJBC Information Technology, you can compare the effects of market volatilities on Guangdong Silvere and ZJBC Information 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 Silvere with a short position of ZJBC Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and ZJBC Information.
Diversification Opportunities for Guangdong Silvere and ZJBC Information
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and ZJBC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and ZJBC Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZJBC Information Tec and Guangdong Silvere 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 Silvere Sci are associated (or correlated) with ZJBC Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZJBC Information Tec has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and ZJBC Information go up and down completely randomly.
Pair Corralation between Guangdong Silvere and ZJBC Information
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to under-perform the ZJBC Information. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Silvere Sci is 1.38 times less risky than ZJBC Information. The stock trades about -0.12 of its potential returns per unit of risk. The ZJBC Information Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 228.00 in ZJBC Information Technology on September 27, 2024 and sell it today you would earn a total of 23.00 from holding ZJBC Information Technology or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. ZJBC Information Technology
Performance |
| Timeline |
| Guangdong Silvere Sci |
| ZJBC Information Tec |
Guangdong Silvere and ZJBC Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and ZJBC Information
The main advantage of trading using opposite Guangdong Silvere and ZJBC Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, ZJBC Information 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 ZJBC Information will offset losses from the drop in ZJBC Information's long position.| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
| ZJBC Information vs. Humanwell Healthcare Group | ZJBC Information vs. Chenzhou Jingui Silver | ZJBC Information vs. Guangdong Silvere Sci | ZJBC Information vs. JCHX Mining Management |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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