Correlation Between Guangzhou Boji and Poly Real
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By analyzing existing cross correlation between Guangzhou Boji Medical and Poly Real Estate, you can compare the effects of market volatilities on Guangzhou Boji and Poly Real 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 Guangzhou Boji with a short position of Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and Poly Real.
Diversification Opportunities for Guangzhou Boji and Poly Real
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Poly is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate and Guangzhou Boji 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 Guangzhou Boji Medical are associated (or correlated) with Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Guangzhou Boji i.e., Guangzhou Boji and Poly Real go up and down completely randomly.
Pair Corralation between Guangzhou Boji and Poly Real
Assuming the 90 days trading horizon Guangzhou Boji Medical is expected to generate 2.09 times more return on investment than Poly Real. However, Guangzhou Boji is 2.09 times more volatile than Poly Real Estate. It trades about 0.05 of its potential returns per unit of risk. Poly Real Estate is currently generating about -0.18 per unit of risk. If you would invest 974.00 in Guangzhou Boji Medical on September 13, 2024 and sell it today you would earn a total of 28.00 from holding Guangzhou Boji Medical or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Boji Medical vs. Poly Real Estate
Performance |
| Timeline |
| Guangzhou Boji Medical |
| Poly Real Estate |
Guangzhou Boji and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and Poly Real
The main advantage of trading using opposite Guangzhou Boji and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Guangzhou Boji vs. China Life Insurance | Guangzhou Boji vs. Cinda Securities Co | Guangzhou Boji vs. Piotech Inc A | Guangzhou Boji vs. Dongxing Sec Co |
| Poly Real vs. Hefei Metalforming Mach | Poly Real vs. Chengtun Mining Group | Poly Real vs. Ningbo Thermal Power | Poly Real vs. MayAir Technology Co |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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