Correlation Between GuoChuang Software and Der International
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By analyzing existing cross correlation between GuoChuang Software Co and Der International Home, you can compare the effects of market volatilities on GuoChuang Software and Der International 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 GuoChuang Software with a short position of Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Der International.
Diversification Opportunities for GuoChuang Software and Der International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GuoChuang and Der is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home and GuoChuang Software 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 GuoChuang Software Co are associated (or correlated) with Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and Der International go up and down completely randomly.
Pair Corralation between GuoChuang Software and Der International
Assuming the 90 days trading horizon GuoChuang Software Co is expected to generate 1.41 times more return on investment than Der International. However, GuoChuang Software is 1.41 times more volatile than Der International Home. It trades about 0.03 of its potential returns per unit of risk. Der International Home is currently generating about -0.02 per unit of risk. If you would invest 1,816 in GuoChuang Software Co on October 16, 2024 and sell it today you would earn a total of 221.00 from holding GuoChuang Software Co or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. Der International Home
Performance |
| Timeline |
| GuoChuang Software |
| Der International Home |
GuoChuang Software and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Der International
The main advantage of trading using opposite GuoChuang Software and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| GuoChuang Software vs. Shantui Construction Machinery | GuoChuang Software vs. JCHX Mining Management | GuoChuang Software vs. Weichai Heavy Machinery | GuoChuang Software vs. Ningbo Construction Co |
| Der International vs. GuoChuang Software Co | Der International vs. Cansino Biologics | Der International vs. Fujian Boss Software | Der International vs. Guangzhou KDT Machinery |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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