Correlation Between GuoChuang Software and Sino Wealth
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By analyzing existing cross correlation between GuoChuang Software Co and Sino Wealth Electronic, you can compare the effects of market volatilities on GuoChuang Software and Sino Wealth 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 Sino Wealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Sino Wealth.
Diversification Opportunities for GuoChuang Software and Sino Wealth
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GuoChuang and Sino is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Sino Wealth Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Wealth Electronic 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 Sino Wealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Wealth Electronic has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and Sino Wealth go up and down completely randomly.
Pair Corralation between GuoChuang Software and Sino Wealth
Assuming the 90 days trading horizon GuoChuang Software Co is expected to generate 1.65 times more return on investment than Sino Wealth. However, GuoChuang Software is 1.65 times more volatile than Sino Wealth Electronic. It trades about 0.05 of its potential returns per unit of risk. Sino Wealth Electronic is currently generating about -0.02 per unit of risk. If you would invest 2,079 in GuoChuang Software Co on October 24, 2024 and sell it today you would earn a total of 153.00 from holding GuoChuang Software Co or generate 7.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
GuoChuang Software Co vs. Sino Wealth Electronic
Performance |
| Timeline |
| GuoChuang Software |
| Sino Wealth Electronic |
GuoChuang Software and Sino Wealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Sino Wealth
The main advantage of trading using opposite GuoChuang Software and Sino Wealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, Sino Wealth 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 Sino Wealth will offset losses from the drop in Sino Wealth's long position.| GuoChuang Software vs. China Life Insurance | GuoChuang Software vs. Jiangsu Yanghe Brewery | GuoChuang Software vs. China World Trade | GuoChuang Software vs. Guizhou Chanhen Chemical |
| Sino Wealth vs. Shuhua Sports Co | Sino Wealth vs. Jiangsu Hoperun Software | Sino Wealth vs. GuoChuang Software Co | Sino Wealth vs. Threes Company Media |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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