Correlation Between Guangdong Wens and Shaanxi Meineng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Wens Foodstuff and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Guangdong Wens and Shaanxi Meineng 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 Wens with a short position of Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Shaanxi Meineng.
Diversification Opportunities for Guangdong Wens and Shaanxi Meineng
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Shaanxi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean and Guangdong Wens 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 Wens Foodstuff are associated (or correlated) with Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Guangdong Wens and Shaanxi Meineng
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Shaanxi Meineng. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.44 times less risky than Shaanxi Meineng. The stock trades about -0.02 of its potential returns per unit of risk. The Shaanxi Meineng Clean is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,155 in Shaanxi Meineng Clean on October 29, 2024 and sell it today you would earn a total of 81.00 from holding Shaanxi Meineng Clean or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Shaanxi Meineng Clean
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Shaanxi Meineng Clean |
Guangdong Wens and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Shaanxi Meineng
The main advantage of trading using opposite Guangdong Wens and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Guangdong Wens vs. Shanghai Phichem Material | Guangdong Wens vs. Western Metal Materials | Guangdong Wens vs. China Building Material | Guangdong Wens vs. Liaoning Dingjide Petrochemical |
| Shaanxi Meineng vs. Xiamen Jihong Package | Shaanxi Meineng vs. Shantou Wanshun Package | Shaanxi Meineng vs. Cultural Investment Holdings | Shaanxi Meineng vs. Xiandai Investment 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |