Correlation Between Guangdong Xiongsu and Zangge Holding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Xiongsu Technology and Zangge Holding Co, you can compare the effects of market volatilities on Guangdong Xiongsu and Zangge Holding 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 Xiongsu with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Zangge Holding.
Diversification Opportunities for Guangdong Xiongsu and Zangge Holding
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Zangge is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Guangdong Xiongsu 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 Xiongsu Technology are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Zangge Holding go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Zangge Holding
Assuming the 90 days trading horizon Guangdong Xiongsu is expected to generate 1.42 times less return on investment than Zangge Holding. In addition to that, Guangdong Xiongsu is 1.64 times more volatile than Zangge Holding Co. It trades about 0.01 of its total potential returns per unit of risk. Zangge Holding Co is currently generating about 0.03 per unit of volatility. If you would invest 2,335 in Zangge Holding Co on September 26, 2024 and sell it today you would earn a total of 440.00 from holding Zangge Holding Co or generate 18.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Zangge Holding Co
Performance |
| Timeline |
| Guangdong Xiongsu |
| Zangge Holding |
Guangdong Xiongsu and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Zangge Holding
The main advantage of trading using opposite Guangdong Xiongsu and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Guangdong Xiongsu vs. Kweichow Moutai Co | Guangdong Xiongsu vs. Contemporary Amperex Technology | Guangdong Xiongsu vs. G bits Network Technology | Guangdong Xiongsu vs. BYD Co Ltd |
| Zangge Holding vs. Guangdong Shenglu Telecommunication | Zangge Holding vs. Gan Yuan Foods | Zangge Holding vs. Qingdao Foods Co | Zangge Holding vs. Fiberhome Telecommunication Technologies |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |