Correlation Between Ziel Home and Guangzhou Seagull
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By analyzing existing cross correlation between Ziel Home Furnishing and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Ziel Home 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 Ziel Home with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Guangzhou Seagull.
Diversification Opportunities for Ziel Home and Guangzhou Seagull
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ziel and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing 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 Ziel Home 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 Ziel Home Furnishing 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 Ziel Home i.e., Ziel Home and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Ziel Home and Guangzhou Seagull
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 0.62 times more return on investment than Guangzhou Seagull. However, Ziel Home Furnishing is 1.61 times less risky than Guangzhou Seagull. It trades about 0.14 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.01 per unit of risk. If you would invest 1,878 in Ziel Home Furnishing on November 3, 2024 and sell it today you would earn a total of 93.00 from holding Ziel Home Furnishing or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Ziel Home Furnishing |
| Guangzhou Seagull Kitchen |
Ziel Home and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Guangzhou Seagull
The main advantage of trading using opposite Ziel Home and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home 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.| Ziel Home vs. Shenzhen SDG Information | Ziel Home vs. HengFeng Information Technology | Ziel Home vs. Hainan Mining Co | Ziel Home vs. Hygon Information Technology |
| Guangzhou Seagull vs. Dazhong Transportation Group | Guangzhou Seagull vs. Jiamei Food Packaging | Guangzhou Seagull vs. RoadMain T Co | Guangzhou Seagull vs. HaiXin Foods Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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