Correlation Between China Asset and Guangdong Wens
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By analyzing existing cross correlation between China Asset Management and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on China Asset and Guangdong Wens 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 Guangdong Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Guangdong Wens.
Diversification Opportunities for China Asset and Guangdong Wens
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Guangdong is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Guangdong Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of China Asset i.e., China Asset and Guangdong Wens go up and down completely randomly.
Pair Corralation between China Asset and Guangdong Wens
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.93 times more return on investment than Guangdong Wens. However, China Asset Management is 1.07 times less risky than Guangdong Wens. It trades about 0.42 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.24 per unit of risk. If you would invest 356.00 in China Asset Management on October 28, 2024 and sell it today you would earn a total of 35.00 from holding China Asset Management or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| China Asset Management |
| Guangdong Wens Foodstuff |
China Asset and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Guangdong Wens
The main advantage of trading using opposite China Asset and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Guangdong Wens 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 Guangdong Wens will offset losses from the drop in Guangdong Wens' long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Guangdong Wens vs. Luyin Investment Group | Guangdong Wens vs. Cultural Investment Holdings | Guangdong Wens vs. China Asset Management | Guangdong Wens vs. Jointo Energy Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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