Correlation Between Guangzhou Shangpin and Suofeiya Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Shangpin Home and Suofeiya Home Collection, you can compare the effects of market volatilities on Guangzhou Shangpin and Suofeiya Home 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 Guangzhou Shangpin with a short position of Suofeiya Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shangpin and Suofeiya Home.
Diversification Opportunities for Guangzhou Shangpin and Suofeiya Home
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Suofeiya is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shangpin Home and Suofeiya Home Collection in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suofeiya Home Collection and Guangzhou Shangpin 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 Guangzhou Shangpin Home are associated (or correlated) with Suofeiya Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suofeiya Home Collection has no effect on the direction of Guangzhou Shangpin i.e., Guangzhou Shangpin and Suofeiya Home go up and down completely randomly.
Pair Corralation between Guangzhou Shangpin and Suofeiya Home
Assuming the 90 days trading horizon Guangzhou Shangpin Home is expected to under-perform the Suofeiya Home. In addition to that, Guangzhou Shangpin is 1.3 times more volatile than Suofeiya Home Collection. It trades about 0.0 of its total potential returns per unit of risk. Suofeiya Home Collection is currently generating about 0.02 per unit of volatility. If you would invest 1,702 in Suofeiya Home Collection on September 12, 2024 and sell it today you would earn a total of 107.00 from holding Suofeiya Home Collection or generate 6.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shangpin Home vs. Suofeiya Home Collection
Performance |
| Timeline |
| Guangzhou Shangpin Home |
| Suofeiya Home Collection |
Guangzhou Shangpin and Suofeiya Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shangpin and Suofeiya Home
The main advantage of trading using opposite Guangzhou Shangpin and Suofeiya Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shangpin position performs unexpectedly, Suofeiya Home 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 Suofeiya Home will offset losses from the drop in Suofeiya Home's long position.| Guangzhou Shangpin vs. Lutian Machinery Co | Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Bank of China | Guangzhou Shangpin vs. Gansu Jiu Steel |
| Suofeiya Home vs. Lutian Machinery Co | Suofeiya Home vs. PetroChina Co Ltd | Suofeiya Home vs. Bank of China | Suofeiya Home vs. Gansu Jiu Steel |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |