Correlation Between Poly Real and Guangzhou Boji
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By analyzing existing cross correlation between Poly Real Estate and Guangzhou Boji Medical, you can compare the effects of market volatilities on Poly Real and Guangzhou Boji 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 Poly Real with a short position of Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Guangzhou Boji.
Diversification Opportunities for Poly Real and Guangzhou Boji
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Poly and Guangzhou is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical and Poly Real 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 Poly Real Estate are associated (or correlated) with Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Poly Real i.e., Poly Real and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Poly Real and Guangzhou Boji
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Guangzhou Boji. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.42 times less risky than Guangzhou Boji. The stock trades about -0.04 of its potential returns per unit of risk. The Guangzhou Boji Medical is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 787.00 in Guangzhou Boji Medical on September 30, 2024 and sell it today you would earn a total of 121.00 from holding Guangzhou Boji Medical or generate 15.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Poly Real Estate |
| Guangzhou Boji Medical |
Poly Real and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Guangzhou Boji
The main advantage of trading using opposite Poly Real and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Guangzhou Boji 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 Boji will offset losses from the drop in Guangzhou Boji's long position.| Poly Real vs. PetroChina Co Ltd | Poly Real vs. China Mobile Limited | Poly Real vs. CNOOC Limited | Poly Real vs. Ping An Insurance |
| Guangzhou Boji vs. Poly Real Estate | Guangzhou Boji vs. China Vanke Co | Guangzhou Boji vs. China Merchants Shekou | Guangzhou Boji vs. Huafa Industrial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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