Correlation Between Guangdong Wens and Integrated Electronic
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Integrated Electronic Systems, you can compare the effects of market volatilities on Guangdong Wens and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Integrated Electronic.
Diversification Opportunities for Guangdong Wens and Integrated Electronic
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and Integrated is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Integrated Electronic go up and down completely randomly.
Pair Corralation between Guangdong Wens and Integrated Electronic
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Integrated Electronic. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.48 times less risky than Integrated Electronic. The stock trades about -0.06 of its potential returns per unit of risk. The Integrated Electronic Systems is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Integrated Electronic Systems on November 3, 2024 and sell it today you would earn a total of 139.00 from holding Integrated Electronic Systems or generate 26.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Integrated Electronic Systems
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Integrated Electronic |
Guangdong Wens and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Integrated Electronic
The main advantage of trading using opposite Guangdong Wens and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| Guangdong Wens vs. Bus Online Co | Guangdong Wens vs. Holitech Technology Co | Guangdong Wens vs. Gome Telecom Equipment | Guangdong Wens vs. Cultural Investment Holdings |
| Integrated Electronic vs. Baoding Dongli Machinery | Integrated Electronic vs. Senci Electric Machinery | Integrated Electronic vs. JuneYao Dairy Co | Integrated Electronic vs. Qingdao Foods 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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