Correlation Between Guangdong Wens and Shenzhen Worldunion
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Shenzhen Worldunion Properties, you can compare the effects of market volatilities on Guangdong Wens and Shenzhen Worldunion 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 Shenzhen Worldunion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Shenzhen Worldunion.
Diversification Opportunities for Guangdong Wens and Shenzhen Worldunion
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Shenzhen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Shenzhen Worldunion Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Worldunion 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 Shenzhen Worldunion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Worldunion has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Shenzhen Worldunion go up and down completely randomly.
Pair Corralation between Guangdong Wens and Shenzhen Worldunion
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Shenzhen Worldunion. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 2.66 times less risky than Shenzhen Worldunion. The stock trades about -0.13 of its potential returns per unit of risk. The Shenzhen Worldunion Properties is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 330.00 in Shenzhen Worldunion Properties on September 15, 2024 and sell it today you would earn a total of 9.00 from holding Shenzhen Worldunion Properties or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Shenzhen Worldunion Properties
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Shenzhen Worldunion |
Guangdong Wens and Shenzhen Worldunion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Shenzhen Worldunion
The main advantage of trading using opposite Guangdong Wens and Shenzhen Worldunion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Shenzhen Worldunion 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 Shenzhen Worldunion will offset losses from the drop in Shenzhen Worldunion's long position.| Guangdong Wens vs. Nanjing Putian Telecommunications | Guangdong Wens vs. Tianjin Realty Development | Guangdong Wens vs. Kangyue Technology Co | Guangdong Wens vs. Shenzhen Hifuture Electric |
| Shenzhen Worldunion vs. Hubeiyichang Transportation Group | Shenzhen Worldunion vs. Eastern Air Logistics | Shenzhen Worldunion vs. Ligao Foods CoLtd | Shenzhen Worldunion vs. Guangdong Wens Foodstuff |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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