Correlation Between GuoChuang Software and Shanghai Rightongene
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By analyzing existing cross correlation between GuoChuang Software Co and Shanghai Rightongene Biotechnology, you can compare the effects of market volatilities on GuoChuang Software and Shanghai Rightongene 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 Shanghai Rightongene. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Shanghai Rightongene.
Diversification Opportunities for GuoChuang Software and Shanghai Rightongene
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GuoChuang and Shanghai is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Shanghai Rightongene Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rightongene 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 Shanghai Rightongene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rightongene has no effect on the direction of GuoChuang Software i.e., GuoChuang Software and Shanghai Rightongene go up and down completely randomly.
Pair Corralation between GuoChuang Software and Shanghai Rightongene
Assuming the 90 days trading horizon GuoChuang Software Co is expected to generate 1.51 times more return on investment than Shanghai Rightongene. However, GuoChuang Software is 1.51 times more volatile than Shanghai Rightongene Biotechnology. It trades about 0.37 of its potential returns per unit of risk. Shanghai Rightongene Biotechnology is currently generating about 0.36 per unit of risk. If you would invest 2,028 in GuoChuang Software Co on November 5, 2024 and sell it today you would earn a total of 382.00 from holding GuoChuang Software Co or generate 18.84% 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. Shanghai Rightongene Biotechno
Performance |
| Timeline |
| GuoChuang Software |
| Shanghai Rightongene |
GuoChuang Software and Shanghai Rightongene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Shanghai Rightongene
The main advantage of trading using opposite GuoChuang Software and Shanghai Rightongene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software position performs unexpectedly, Shanghai Rightongene 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 Shanghai Rightongene will offset losses from the drop in Shanghai Rightongene's long position.| GuoChuang Software vs. Postal Savings Bank | GuoChuang Software vs. Cicc Fund Management | GuoChuang Software vs. Huaxia Fund Management | GuoChuang Software vs. Ping An Insurance |
| Shanghai Rightongene vs. Sinomach Automobile Co | Shanghai Rightongene vs. CICT Mobile Communication | Shanghai Rightongene vs. China Satellite Communications | Shanghai Rightongene vs. Dr Peng Telecom |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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