Correlation Between Guangdong Silvere and Xiamen Jihong
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By analyzing existing cross correlation between Guangdong Silvere Sci and Xiamen Jihong Package, you can compare the effects of market volatilities on Guangdong Silvere and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Xiamen Jihong.
Diversification Opportunities for Guangdong Silvere and Xiamen Jihong
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Xiamen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Xiamen Jihong
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 0.93 times more return on investment than Xiamen Jihong. However, Guangdong Silvere Sci is 1.08 times less risky than Xiamen Jihong. It trades about 0.01 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about 0.0 per unit of risk. If you would invest 547.00 in Guangdong Silvere Sci on October 13, 2024 and sell it today you would lose (16.00) from holding Guangdong Silvere Sci or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Xiamen Jihong Package
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Xiamen Jihong Package |
Guangdong Silvere and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Xiamen Jihong
The main advantage of trading using opposite Guangdong Silvere and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.| Guangdong Silvere vs. Songz Automobile Air | Guangdong Silvere vs. Changchun Engley Automobile | Guangdong Silvere vs. Shandong Hongchuang Aluminum | Guangdong Silvere vs. Ningbo Fangzheng Automobile |
| Xiamen Jihong vs. Shenzhen Silver Basis | Xiamen Jihong vs. Jilin OLED Material | Xiamen Jihong vs. Western Mining Co | Xiamen Jihong vs. Guangdong Silvere Sci |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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