Correlation Between Guangdong Brandmax and Industrial
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Industrial and Commercial, you can compare the effects of market volatilities on Guangdong Brandmax and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Industrial.
Diversification Opportunities for Guangdong Brandmax and Industrial
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Industrial is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Industrial go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Industrial
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 4.17 times more return on investment than Industrial. However, Guangdong Brandmax is 4.17 times more volatile than Industrial and Commercial. It trades about 0.06 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.07 per unit of risk. If you would invest 891.00 in Guangdong Brandmax Marketing on August 29, 2024 and sell it today you would earn a total of 32.00 from holding Guangdong Brandmax Marketing or generate 3.59% 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. Industrial and Commercial
Performance |
| Timeline |
| Guangdong Brandmax |
| Industrial and Commercial |
Guangdong Brandmax and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Industrial
The main advantage of trading using opposite Guangdong Brandmax and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial'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 |
| Industrial vs. Allwin Telecommunication Co | Industrial vs. SUNSEA Telecommunications Co | Industrial vs. Guangzhou Haige Communications | Industrial vs. Nanjing Putian Telecommunications |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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