Correlation Between Guangzhou Shangpin and Hangzhou Arcvideo
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By analyzing existing cross correlation between Guangzhou Shangpin Home and Hangzhou Arcvideo Technology, you can compare the effects of market volatilities on Guangzhou Shangpin and Hangzhou Arcvideo 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 Hangzhou Arcvideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shangpin and Hangzhou Arcvideo.
Diversification Opportunities for Guangzhou Shangpin and Hangzhou Arcvideo
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Hangzhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shangpin Home and Hangzhou Arcvideo Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Arcvideo 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 Hangzhou Arcvideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Arcvideo has no effect on the direction of Guangzhou Shangpin i.e., Guangzhou Shangpin and Hangzhou Arcvideo go up and down completely randomly.
Pair Corralation between Guangzhou Shangpin and Hangzhou Arcvideo
Assuming the 90 days trading horizon Guangzhou Shangpin Home is expected to generate 0.77 times more return on investment than Hangzhou Arcvideo. However, Guangzhou Shangpin Home is 1.31 times less risky than Hangzhou Arcvideo. It trades about -0.37 of its potential returns per unit of risk. Hangzhou Arcvideo Technology is currently generating about -0.34 per unit of risk. If you would invest 1,442 in Guangzhou Shangpin Home on October 9, 2024 and sell it today you would lose (298.00) from holding Guangzhou Shangpin Home or give up 20.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shangpin Home vs. Hangzhou Arcvideo Technology
Performance |
| Timeline |
| Guangzhou Shangpin Home |
| Hangzhou Arcvideo |
Guangzhou Shangpin and Hangzhou Arcvideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shangpin and Hangzhou Arcvideo
The main advantage of trading using opposite Guangzhou Shangpin and Hangzhou Arcvideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shangpin position performs unexpectedly, Hangzhou Arcvideo 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 Hangzhou Arcvideo will offset losses from the drop in Hangzhou Arcvideo's long position.| Guangzhou Shangpin vs. Tsingtao Brewery Co | Guangzhou Shangpin vs. Tonghua Grape Wine | Guangzhou Shangpin vs. Eastroc Beverage Group | Guangzhou Shangpin vs. Anhui Gujing Distillery |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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