Correlation Between Porton Fine and Guotai Epoint
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By analyzing existing cross correlation between Porton Fine Chemicals and Guotai Epoint Software, you can compare the effects of market volatilities on Porton Fine and Guotai Epoint 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 Porton Fine with a short position of Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porton Fine and Guotai Epoint.
Diversification Opportunities for Porton Fine and Guotai Epoint
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Porton and Guotai is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Porton Fine Chemicals and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software and Porton Fine 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 Porton Fine Chemicals are associated (or correlated) with Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Porton Fine i.e., Porton Fine and Guotai Epoint go up and down completely randomly.
Pair Corralation between Porton Fine and Guotai Epoint
Assuming the 90 days trading horizon Porton Fine Chemicals is expected to under-perform the Guotai Epoint. But the stock apears to be less risky and, when comparing its historical volatility, Porton Fine Chemicals is 1.08 times less risky than Guotai Epoint. The stock trades about -0.06 of its potential returns per unit of risk. The Guotai Epoint Software is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 5,970 in Guotai Epoint Software on October 12, 2024 and sell it today you would lose (3,363) from holding Guotai Epoint Software or give up 56.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porton Fine Chemicals vs. Guotai Epoint Software
Performance |
| Timeline |
| Porton Fine Chemicals |
| Guotai Epoint Software |
Porton Fine and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porton Fine and Guotai Epoint
The main advantage of trading using opposite Porton Fine and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porton Fine position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Porton Fine vs. Sichuan Yahua Industrial | Porton Fine vs. Xinjiang Baodi Mining | Porton Fine vs. Lonkey Industrial Co | Porton Fine vs. Lontium Semiconductor Corp |
| Guotai Epoint vs. Yingde Greatchem Chemicals | Guotai Epoint vs. Bus Online Co | Guotai Epoint vs. Dymatic Chemicals | Guotai Epoint vs. Porton Fine Chemicals |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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