Correlation Between Guangdong Brandmax and Shareate Tools
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Shareate Tools, you can compare the effects of market volatilities on Guangdong Brandmax and Shareate Tools 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 Shareate Tools. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Shareate Tools.
Diversification Opportunities for Guangdong Brandmax and Shareate Tools
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Shareate is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Shareate Tools in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shareate Tools 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 Shareate Tools. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shareate Tools has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Shareate Tools go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Shareate Tools
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.42 times more return on investment than Shareate Tools. However, Guangdong Brandmax is 1.42 times more volatile than Shareate Tools. It trades about 0.04 of its potential returns per unit of risk. Shareate Tools is currently generating about 0.02 per unit of risk. If you would invest 767.00 in Guangdong Brandmax Marketing on December 4, 2024 and sell it today you would earn a total of 328.00 from holding Guangdong Brandmax Marketing or generate 42.76% 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. Shareate Tools
Performance |
| Timeline |
| Guangdong Brandmax |
| Shareate Tools |
Guangdong Brandmax and Shareate Tools Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Shareate Tools
The main advantage of trading using opposite Guangdong Brandmax and Shareate Tools positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Shareate Tools 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 Shareate Tools will offset losses from the drop in Shareate Tools' long position.| Guangdong Brandmax vs. Changjiang Jinggong Steel | Guangdong Brandmax vs. Eit Environmental Development | Guangdong Brandmax vs. Simei Media Co | Guangdong Brandmax vs. Liuzhou Iron Steel |
| Shareate Tools vs. Shanghai Yanpu Metal | Shareate Tools vs. Nsfocus Information Technology | Shareate Tools vs. Yonyou Auto Information | Shareate Tools vs. Dazhong Transportation Group |
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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