Correlation Between Guangdong Xiongsu and Tangel Publishing
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Tangel Publishing, you can compare the effects of market volatilities on Guangdong Xiongsu and Tangel Publishing 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 Tangel Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Tangel Publishing.
Diversification Opportunities for Guangdong Xiongsu and Tangel Publishing
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Tangel is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Tangel Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tangel Publishing 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 Tangel Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tangel Publishing has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Tangel Publishing go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Tangel Publishing
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to generate 1.38 times more return on investment than Tangel Publishing. However, Guangdong Xiongsu is 1.38 times more volatile than Tangel Publishing. It trades about -0.13 of its potential returns per unit of risk. Tangel Publishing is currently generating about -0.36 per unit of risk. If you would invest 765.00 in Guangdong Xiongsu Technology on October 16, 2024 and sell it today you would lose (128.00) from holding Guangdong Xiongsu Technology or give up 16.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Tangel Publishing
Performance |
| Timeline |
| Guangdong Xiongsu |
| Tangel Publishing |
Guangdong Xiongsu and Tangel Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Tangel Publishing
The main advantage of trading using opposite Guangdong Xiongsu and Tangel Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Tangel Publishing 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 Tangel Publishing will offset losses from the drop in Tangel Publishing's long position.| Guangdong Xiongsu vs. Xinxiang Chemical Fiber | Guangdong Xiongsu vs. Easyhome New Retail | Guangdong Xiongsu vs. Nanning Chemical Industry | Guangdong Xiongsu vs. Shandong Rike Chemical |
| Tangel Publishing vs. Guangdong Xiongsu Technology | Tangel Publishing vs. Lootom Telcovideo Network | Tangel Publishing vs. Smartgiant Technology Co | Tangel Publishing vs. Hangzhou Arcvideo Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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