Correlation Between Fujian Nanwang and Guangzhou Seagull
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By analyzing existing cross correlation between Fujian Nanwang Environment and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Fujian Nanwang and Guangzhou Seagull 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 Fujian Nanwang with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Guangzhou Seagull.
Diversification Opportunities for Fujian Nanwang and Guangzhou Seagull
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Guangzhou is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Fujian Nanwang 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 Fujian Nanwang Environment are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Fujian Nanwang i.e., Fujian Nanwang and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Guangzhou Seagull
Assuming the 90 days trading horizon Fujian Nanwang Environment is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Fujian Nanwang Environment is 1.16 times less risky than Guangzhou Seagull. The stock trades about -0.02 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 399.00 in Guangzhou Seagull Kitchen on September 12, 2024 and sell it today you would lose (52.00) from holding Guangzhou Seagull Kitchen or give up 13.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Guangzhou Seagull Kitchen |
Fujian Nanwang and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Guangzhou Seagull
The main advantage of trading using opposite Fujian Nanwang and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co |
| Guangzhou Seagull vs. Agricultural Bank of | Guangzhou Seagull vs. Industrial and Commercial | Guangzhou Seagull vs. Bank of China | Guangzhou Seagull vs. PetroChina Co Ltd |
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 CEOs Directory module to screen CEOs from public companies around the world.
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