Correlation Between Guangdong Brandmax and China World
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and China World Trade, you can compare the effects of market volatilities on Guangdong Brandmax and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and China World.
Diversification Opportunities for Guangdong Brandmax and China World
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and China is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and China World go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and China World
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 2.4 times more return on investment than China World. However, Guangdong Brandmax is 2.4 times more volatile than China World Trade. It trades about 0.02 of its potential returns per unit of risk. China World Trade is currently generating about 0.05 per unit of risk. If you would invest 894.00 in Guangdong Brandmax Marketing on August 24, 2024 and sell it today you would earn a total of 13.00 from holding Guangdong Brandmax Marketing or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. China World Trade
Performance |
| Timeline |
| Guangdong Brandmax |
| China World Trade |
Guangdong Brandmax and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and China World
The main advantage of trading using opposite Guangdong Brandmax and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, China World 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 China World will offset losses from the drop in China World'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 |
| China World vs. JiShi Media Co | China World vs. Advanced Technology Materials | China World vs. Ciwen Media Co | China World vs. Omnijoi Media Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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