Correlation Between Guangdong Transtek and GRG Banking
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Transtek Medical and GRG Banking Equipment, you can compare the effects of market volatilities on Guangdong Transtek and GRG Banking 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 Transtek with a short position of GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and GRG Banking.
Diversification Opportunities for Guangdong Transtek and GRG Banking
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and GRG is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment and Guangdong Transtek 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 Transtek Medical are associated (or correlated) with GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Guangdong Transtek i.e., Guangdong Transtek and GRG Banking go up and down completely randomly.
Pair Corralation between Guangdong Transtek and GRG Banking
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to generate 1.74 times more return on investment than GRG Banking. However, Guangdong Transtek is 1.74 times more volatile than GRG Banking Equipment. It trades about 0.01 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.04 per unit of risk. If you would invest 1,277 in Guangdong Transtek Medical on October 14, 2024 and sell it today you would lose (61.00) from holding Guangdong Transtek Medical or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. GRG Banking Equipment
Performance |
| Timeline |
| Guangdong Transtek |
| GRG Banking Equipment |
Guangdong Transtek and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and GRG Banking
The main advantage of trading using opposite Guangdong Transtek and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.The idea behind Guangdong Transtek Medical and GRG Banking Equipment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| GRG Banking vs. Shanghai Sanyou Medical | GRG Banking vs. Guangdong Transtek Medical | GRG Banking vs. Dazhong Transportation Group | GRG Banking vs. Nanjing Vishee Medical |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |