Correlation Between Guangdong Wens and Gansu Yasheng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Wens Foodstuff and Gansu Yasheng Industrial, you can compare the effects of market volatilities on Guangdong Wens and Gansu Yasheng 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 Gansu Yasheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Gansu Yasheng.
Diversification Opportunities for Guangdong Wens and Gansu Yasheng
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Gansu is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Gansu Yasheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Yasheng Industrial 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 Gansu Yasheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Yasheng Industrial has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Gansu Yasheng go up and down completely randomly.
Pair Corralation between Guangdong Wens and Gansu Yasheng
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to generate 0.57 times more return on investment than Gansu Yasheng. However, Guangdong Wens Foodstuff is 1.76 times less risky than Gansu Yasheng. It trades about -0.19 of its potential returns per unit of risk. Gansu Yasheng Industrial is currently generating about -0.12 per unit of risk. If you would invest 1,678 in Guangdong Wens Foodstuff on October 23, 2024 and sell it today you would lose (81.00) from holding Guangdong Wens Foodstuff or give up 4.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Gansu Yasheng Industrial
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Gansu Yasheng Industrial |
Guangdong Wens and Gansu Yasheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Gansu Yasheng
The main advantage of trading using opposite Guangdong Wens and Gansu Yasheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Gansu Yasheng 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 Gansu Yasheng will offset losses from the drop in Gansu Yasheng's long position.| Guangdong Wens vs. Ningxia Younglight Chemicals | Guangdong Wens vs. Changchun UP Optotech | Guangdong Wens vs. Sharetronic Data Technology | Guangdong Wens vs. Hubei Xingfa Chemicals |
| Gansu Yasheng vs. Shuhua Sports Co | Gansu Yasheng vs. Sportsoul Co Ltd | Gansu Yasheng vs. Liaoning Chengda Biotechnology | Gansu Yasheng vs. Fujian Wanchen Biotechnology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |