Correlation Between China Asset and Guangzhou Shiyuan
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By analyzing existing cross correlation between China Asset Management and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on China Asset and Guangzhou Shiyuan 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 China Asset with a short position of Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Guangzhou Shiyuan.
Diversification Opportunities for China Asset and Guangzhou Shiyuan
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Guangzhou is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan and China Asset 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 China Asset Management are associated (or correlated) with Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of China Asset i.e., China Asset and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between China Asset and Guangzhou Shiyuan
Assuming the 90 days trading horizon China Asset is expected to generate 1.64 times less return on investment than Guangzhou Shiyuan. But when comparing it to its historical volatility, China Asset Management is 2.77 times less risky than Guangzhou Shiyuan. It trades about 0.15 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,009 in Guangzhou Shiyuan Electronic on September 13, 2024 and sell it today you would earn a total of 917.00 from holding Guangzhou Shiyuan Electronic or generate 30.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| China Asset Management |
| Guangzhou Shiyuan |
China Asset and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Guangzhou Shiyuan
The main advantage of trading using opposite China Asset and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Guangzhou Shiyuan 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 Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| Guangzhou Shiyuan vs. Henan Shuanghui Investment | Guangzhou Shiyuan vs. Zhejiang Construction Investment | Guangzhou Shiyuan vs. Hunan Investment Group | Guangzhou Shiyuan vs. China Asset Management |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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