Correlation Between Guangdong Xiongsu and Guangdong TianYiMa
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Guangdong TianYiMa Information, you can compare the effects of market volatilities on Guangdong Xiongsu and Guangdong TianYiMa 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 Guangdong TianYiMa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Guangdong TianYiMa.
Diversification Opportunities for Guangdong Xiongsu and Guangdong TianYiMa
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Guangdong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Guangdong TianYiMa Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong TianYiMa 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 Guangdong TianYiMa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong TianYiMa has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Guangdong TianYiMa go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Guangdong TianYiMa
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to under-perform the Guangdong TianYiMa. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Xiongsu Technology is 1.08 times less risky than Guangdong TianYiMa. The stock trades about -0.26 of its potential returns per unit of risk. The Guangdong TianYiMa Information is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,892 in Guangdong TianYiMa Information on October 30, 2024 and sell it today you would lose (157.00) from holding Guangdong TianYiMa Information or give up 5.43% 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. Guangdong TianYiMa Information
Performance |
| Timeline |
| Guangdong Xiongsu |
| Guangdong TianYiMa |
Guangdong Xiongsu and Guangdong TianYiMa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Guangdong TianYiMa
The main advantage of trading using opposite Guangdong Xiongsu and Guangdong TianYiMa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Guangdong TianYiMa 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 Guangdong TianYiMa will offset losses from the drop in Guangdong TianYiMa's long position.| Guangdong Xiongsu vs. Jiangxi Hengda Hi Tech | Guangdong Xiongsu vs. China Sports Industry | Guangdong Xiongsu vs. Beijing Seeyon Internet | Guangdong Xiongsu vs. Kuang Chi Technologies |
| Guangdong TianYiMa vs. Namchow Food Group | Guangdong TianYiMa vs. Youyou Foods Co | Guangdong TianYiMa vs. HaiXin Foods Co | Guangdong TianYiMa vs. CITIC Metal Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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