Correlation Between GUOMAI Culture and Guilin Seamild
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By analyzing existing cross correlation between GUOMAI Culture Media and Guilin Seamild Foods, you can compare the effects of market volatilities on GUOMAI Culture and Guilin Seamild 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 GUOMAI Culture with a short position of Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Guilin Seamild.
Diversification Opportunities for GUOMAI Culture and Guilin Seamild
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between GUOMAI and Guilin is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods and GUOMAI Culture 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 GUOMAI Culture Media are associated (or correlated) with Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of GUOMAI Culture i.e., GUOMAI Culture and Guilin Seamild go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Guilin Seamild
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to under-perform the Guilin Seamild. In addition to that, GUOMAI Culture is 1.18 times more volatile than Guilin Seamild Foods. It trades about -0.4 of its total potential returns per unit of risk. Guilin Seamild Foods is currently generating about -0.18 per unit of volatility. If you would invest 1,732 in Guilin Seamild Foods on October 16, 2024 and sell it today you would lose (205.00) from holding Guilin Seamild Foods or give up 11.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Guilin Seamild Foods
Performance |
| Timeline |
| GUOMAI Culture Media |
| Guilin Seamild Foods |
GUOMAI Culture and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Guilin Seamild
The main advantage of trading using opposite GUOMAI Culture and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| GUOMAI Culture vs. Hunan Tyen Machinery | GUOMAI Culture vs. Zoy Home Furnishing | GUOMAI Culture vs. Nanxing Furniture Machinery | GUOMAI Culture vs. Shenzhen Noposion Agrochemicals |
| Guilin Seamild vs. Hunan Investment Group | Guilin Seamild vs. Jiangsu Yueda Investment | Guilin Seamild vs. Porton Fine Chemicals | Guilin Seamild vs. Hubei Xingfa Chemicals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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