Correlation Between Guangdong Silvere and Zhonghong Pulin
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By analyzing existing cross correlation between Guangdong Silvere Sci and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Guangdong Silvere and Zhonghong Pulin 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 Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Zhonghong Pulin.
Diversification Opportunities for Guangdong Silvere and Zhonghong Pulin
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Zhonghong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical 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 Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Zhonghong Pulin
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to under-perform the Zhonghong Pulin. In addition to that, Guangdong Silvere is 1.45 times more volatile than Zhonghong Pulin Medical. It trades about -0.36 of its total potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about -0.42 per unit of volatility. If you would invest 1,494 in Zhonghong Pulin Medical on October 12, 2024 and sell it today you would lose (256.00) from holding Zhonghong Pulin Medical or give up 17.14% 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. Zhonghong Pulin Medical
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Zhonghong Pulin Medical |
Guangdong Silvere and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Zhonghong Pulin
The main advantage of trading using opposite Guangdong Silvere and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Guangdong Silvere vs. V V Food | Guangdong Silvere vs. Hunan Investment Group | Guangdong Silvere vs. Metro Investment Development | Guangdong Silvere vs. Suzhou Weizhixiang Food |
| Zhonghong Pulin vs. Shengda Mining Co | Zhonghong Pulin vs. Ningxia Younglight Chemicals | Zhonghong Pulin vs. Western Mining Co | Zhonghong Pulin 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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