Correlation Between Guangdong Silvere and HMTNew Technical
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By analyzing existing cross correlation between Guangdong Silvere Sci and HMTNew Technical, you can compare the effects of market volatilities on Guangdong Silvere and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and HMTNew Technical.
Diversification Opportunities for Guangdong Silvere and HMTNew Technical
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and HMTNew is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and HMTNew Technical go up and down completely randomly.
Pair Corralation between Guangdong Silvere and HMTNew Technical
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.05 times more return on investment than HMTNew Technical. However, Guangdong Silvere is 1.05 times more volatile than HMTNew Technical. It trades about 0.04 of its potential returns per unit of risk. HMTNew Technical is currently generating about 0.02 per unit of risk. If you would invest 562.00 in Guangdong Silvere Sci on September 12, 2024 and sell it today you would earn a total of 134.00 from holding Guangdong Silvere Sci or generate 23.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. HMTNew Technical
Performance |
| Timeline |
| Guangdong Silvere Sci |
| HMTNew Technical |
Guangdong Silvere and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and HMTNew Technical
The main advantage of trading using opposite Guangdong Silvere and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical's long position.| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Rongsheng Petrochemical Co |
| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical vs. Guangdong Shenglu Telecommunication |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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