Correlation Between Guangdong Brandmax and AUPU Home
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and AUPU Home Style, you can compare the effects of market volatilities on Guangdong Brandmax and AUPU Home 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 AUPU Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and AUPU Home.
Diversification Opportunities for Guangdong Brandmax and AUPU Home
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and AUPU is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and AUPU Home Style in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUPU Home Style 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 AUPU Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUPU Home Style has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and AUPU Home go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and AUPU Home
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.68 times more return on investment than AUPU Home. However, Guangdong Brandmax is 1.68 times more volatile than AUPU Home Style. It trades about 0.04 of its potential returns per unit of risk. AUPU Home Style is currently generating about 0.04 per unit of risk. If you would invest 683.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 337.00 from holding Guangdong Brandmax Marketing or generate 49.34% 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. AUPU Home Style
Performance |
| Timeline |
| Guangdong Brandmax |
| AUPU Home Style |
Guangdong Brandmax and AUPU Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and AUPU Home
The main advantage of trading using opposite Guangdong Brandmax and AUPU Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, AUPU Home 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 AUPU Home will offset losses from the drop in AUPU Home's long position.| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery Co |
| AUPU Home vs. Lutian Machinery Co | AUPU Home vs. China Longyuan Power | AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. Bank of China |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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