Correlation Between Guangdong Wens and Poly Real
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Poly Real Estate, you can compare the effects of market volatilities on Guangdong Wens and Poly Real 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 Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Poly Real.
Diversification Opportunities for Guangdong Wens and Poly Real
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Poly is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate 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 Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Poly Real go up and down completely randomly.
Pair Corralation between Guangdong Wens and Poly Real
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Poly Real. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 1.14 times less risky than Poly Real. The stock trades about -0.24 of its potential returns per unit of risk. The Poly Real Estate is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,082 in Poly Real Estate on September 13, 2024 and sell it today you would lose (66.00) from holding Poly Real Estate or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Poly Real Estate
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Poly Real Estate |
Guangdong Wens and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Poly Real
The main advantage of trading using opposite Guangdong Wens and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real'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 |
| Poly Real vs. Hefei Metalforming Mach | Poly Real vs. Chengtun Mining Group | Poly Real vs. Ningbo Thermal Power | Poly Real vs. MayAir Technology 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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