Correlation Between Guangdong Wens and Shenyang Blue
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Shenyang Blue Silver, you can compare the effects of market volatilities on Guangdong Wens and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Shenyang Blue.
Diversification Opportunities for Guangdong Wens and Shenyang Blue
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Shenyang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Shenyang Blue go up and down completely randomly.
Pair Corralation between Guangdong Wens and Shenyang Blue
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to generate 0.41 times more return on investment than Shenyang Blue. However, Guangdong Wens Foodstuff is 2.46 times less risky than Shenyang Blue. It trades about -0.16 of its potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.18 per unit of risk. If you would invest 1,871 in Guangdong Wens Foodstuff on September 14, 2024 and sell it today you would lose (96.00) from holding Guangdong Wens Foodstuff or give up 5.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Shenyang Blue Silver
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Shenyang Blue Silver |
Guangdong Wens and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Shenyang Blue
The main advantage of trading using opposite Guangdong Wens and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue'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 |
| Shenyang Blue vs. Eastroc Beverage Group | Shenyang Blue vs. Guangdong Wens Foodstuff | Shenyang Blue vs. Tibet Huayu Mining | Shenyang Blue vs. Shantou Wanshun Package |
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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