Correlation Between Shenzhen Hans and Guangxi Guiguan
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By analyzing existing cross correlation between Shenzhen Hans CNC and Guangxi Guiguan Electric, you can compare the effects of market volatilities on Shenzhen Hans and Guangxi Guiguan 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 Shenzhen Hans with a short position of Guangxi Guiguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hans and Guangxi Guiguan.
Diversification Opportunities for Shenzhen Hans and Guangxi Guiguan
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shenzhen and Guangxi is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hans CNC and Guangxi Guiguan Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guiguan Electric and Shenzhen Hans 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 Shenzhen Hans CNC are associated (or correlated) with Guangxi Guiguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guiguan Electric has no effect on the direction of Shenzhen Hans i.e., Shenzhen Hans and Guangxi Guiguan go up and down completely randomly.
Pair Corralation between Shenzhen Hans and Guangxi Guiguan
Assuming the 90 days trading horizon Shenzhen Hans CNC is expected to generate 1.89 times more return on investment than Guangxi Guiguan. However, Shenzhen Hans is 1.89 times more volatile than Guangxi Guiguan Electric. It trades about 0.32 of its potential returns per unit of risk. Guangxi Guiguan Electric is currently generating about -0.1 per unit of risk. If you would invest 3,320 in Shenzhen Hans CNC on November 4, 2024 and sell it today you would earn a total of 486.00 from holding Shenzhen Hans CNC or generate 14.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen Hans CNC vs. Guangxi Guiguan Electric
Performance |
Timeline |
Shenzhen Hans CNC |
Guangxi Guiguan Electric |
Shenzhen Hans and Guangxi Guiguan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen Hans and Guangxi Guiguan
The main advantage of trading using opposite Shenzhen Hans and Guangxi Guiguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hans position performs unexpectedly, Guangxi Guiguan 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 Guangxi Guiguan will offset losses from the drop in Guangxi Guiguan's long position.Shenzhen Hans vs. Ziel Home Furnishing | ||
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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