Correlation Between GuoChuang Software and GUOMAI Culture
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By analyzing existing cross correlation between GuoChuang Software Co and GUOMAI Culture Media, you can compare the effects of market volatilities on GuoChuang Software and GUOMAI Culture 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 GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and GUOMAI Culture.
Diversification Opportunities for GuoChuang Software and GUOMAI Culture
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GuoChuang and GUOMAI is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture Media 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 GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and GUOMAI Culture go up and down completely randomly.
Pair Corralation between GuoChuang Software and GUOMAI Culture
Assuming the 90 days trading horizon GuoChuang Software Co is expected to under-perform the GUOMAI Culture. But the stock apears to be less risky and, when comparing its historical volatility, GuoChuang Software Co is 1.04 times less risky than GUOMAI Culture. The stock trades about -0.44 of its potential returns per unit of risk. The GUOMAI Culture Media is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 3,230 in GUOMAI Culture Media on October 12, 2024 and sell it today you would lose (793.00) from holding GUOMAI Culture Media or give up 24.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. GUOMAI Culture Media
Performance |
| Timeline |
| GuoChuang Software |
| GUOMAI Culture Media |
GuoChuang Software and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and GUOMAI Culture
The main advantage of trading using opposite GuoChuang Software and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| GuoChuang Software vs. China Life Insurance | GuoChuang Software vs. Cinda Securities Co | GuoChuang Software vs. Piotech Inc A | GuoChuang Software vs. Dongxing Sec Co |
| GUOMAI Culture vs. Anhui Jianghuai Automobile | GUOMAI Culture vs. Dareway Software Co | GUOMAI Culture vs. GuoChuang Software Co | GUOMAI Culture vs. Fujian Boss Software |
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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