Correlation Between Guangdong Brandmax and Shanghai Yanpu
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Guangdong Brandmax and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Shanghai Yanpu.
Diversification Opportunities for Guangdong Brandmax and Shanghai Yanpu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Shanghai Yanpu
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.45 times more return on investment than Shanghai Yanpu. However, Guangdong Brandmax is 1.45 times more volatile than Shanghai Yanpu Metal. It trades about 0.11 of its potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.09 per unit of risk. If you would invest 639.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 372.00 from holding Guangdong Brandmax Marketing or generate 58.22% 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. Shanghai Yanpu Metal
Performance |
| Timeline |
| Guangdong Brandmax |
| Shanghai Yanpu Metal |
Guangdong Brandmax and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Shanghai Yanpu
The main advantage of trading using opposite Guangdong Brandmax and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu'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 |
| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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