Correlation Between Guangdong Brandmax and Chongqing Road
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Chongqing Road Bridge, you can compare the effects of market volatilities on Guangdong Brandmax and Chongqing Road 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 Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Chongqing Road.
Diversification Opportunities for Guangdong Brandmax and Chongqing Road
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Chongqing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge 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 Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Chongqing Road go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Chongqing Road
Assuming the 90 days trading horizon Guangdong Brandmax is expected to generate 1.08 times less return on investment than Chongqing Road. But when comparing it to its historical volatility, Guangdong Brandmax Marketing is 1.0 times less risky than Chongqing Road. It trades about 0.1 of its potential returns per unit of risk. Chongqing Road Bridge is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Chongqing Road Bridge on August 25, 2024 and sell it today you would earn a total of 48.00 from holding Chongqing Road Bridge or generate 7.69% 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. Chongqing Road Bridge
Performance |
| Timeline |
| Guangdong Brandmax |
| Chongqing Road Bridge |
Guangdong Brandmax and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Chongqing Road
The main advantage of trading using opposite Guangdong Brandmax and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road'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 |
| Chongqing Road vs. Guangdong Brandmax Marketing | Chongqing Road vs. GRINM Semiconductor Materials | Chongqing Road vs. Shandong Ruifeng Chemical | Chongqing Road vs. StarPower Semiconductor |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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