Correlation Between Guangzhou Boji and Xingguang Agricultural
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By analyzing existing cross correlation between Guangzhou Boji Medical and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Guangzhou Boji and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and Xingguang Agricultural.
Diversification Opportunities for Guangzhou Boji and Xingguang Agricultural
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Xingguang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Guangzhou Boji i.e., Guangzhou Boji and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Guangzhou Boji and Xingguang Agricultural
Assuming the 90 days trading horizon Guangzhou Boji is expected to generate 1.16 times less return on investment than Xingguang Agricultural. In addition to that, Guangzhou Boji is 1.12 times more volatile than Xingguang Agricultural Mach. It trades about 0.06 of its total potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.07 per unit of volatility. If you would invest 723.00 in Xingguang Agricultural Mach on September 1, 2024 and sell it today you would earn a total of 191.00 from holding Xingguang Agricultural Mach or generate 26.42% 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| Guangzhou Boji Medical |
| Xingguang Agricultural |
Guangzhou Boji and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and Xingguang Agricultural
The main advantage of trading using opposite Guangzhou Boji and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Guangzhou Boji vs. Changchun Engley Automobile | Guangzhou Boji vs. Anhui Jianghuai Automobile | Guangzhou Boji vs. Songz Automobile Air | Guangzhou Boji vs. Shenzhen Kexin Communication |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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