Correlation Between Guangdong Brandmax and Sinosteel Engineering
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Sinosteel Engineering and, you can compare the effects of market volatilities on Guangdong Brandmax and Sinosteel Engineering 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 Brandmax with a short position of Sinosteel Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Sinosteel Engineering.
Diversification Opportunities for Guangdong Brandmax and Sinosteel Engineering
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Sinosteel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Sinosteel Engineering and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Engineering and and Guangdong Brandmax 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 Brandmax Marketing are associated (or correlated) with Sinosteel Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Engineering and has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Sinosteel Engineering go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Sinosteel Engineering
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.45 times more return on investment than Sinosteel Engineering. However, Guangdong Brandmax is 1.45 times more volatile than Sinosteel Engineering and. It trades about 0.03 of its potential returns per unit of risk. Sinosteel Engineering and is currently generating about 0.03 per unit of risk. If you would invest 740.00 in Guangdong Brandmax Marketing on August 28, 2024 and sell it today you would earn a total of 209.00 from holding Guangdong Brandmax Marketing or generate 28.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Sinosteel Engineering and
Performance |
| Timeline |
| Guangdong Brandmax |
| Sinosteel Engineering and |
Guangdong Brandmax and Sinosteel Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Sinosteel Engineering
The main advantage of trading using opposite Guangdong Brandmax and Sinosteel Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Sinosteel Engineering 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 Sinosteel Engineering will offset losses from the drop in Sinosteel Engineering's long position.| Guangdong Brandmax vs. Industrial and Commercial | Guangdong Brandmax vs. Agricultural Bank of | Guangdong Brandmax vs. China Construction Bank | Guangdong Brandmax vs. Bank of China |
| Sinosteel Engineering vs. Ming Yang Smart | Sinosteel Engineering vs. 159681 | Sinosteel Engineering vs. 159005 | Sinosteel Engineering vs. Loctek Ergonomic 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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