Correlation Between Poly Real and Guangxi Wuzhou
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By analyzing existing cross correlation between Poly Real Estate and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Poly Real and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and Guangxi Wuzhou.
Diversification Opportunities for Poly Real and Guangxi Wuzhou
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Poly and Guangxi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Poly Real i.e., Poly Real and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Poly Real and Guangxi Wuzhou
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the Guangxi Wuzhou. In addition to that, Poly Real is 1.16 times more volatile than Guangxi Wuzhou Communications. It trades about -0.02 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.03 per unit of volatility. If you would invest 329.00 in Guangxi Wuzhou Communications on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Guangxi Wuzhou Communications or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Poly Real Estate |
| Guangxi Wuzhou Commu |
Poly Real and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and Guangxi Wuzhou
The main advantage of trading using opposite Poly Real and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Poly Real vs. Guangzhou Ruoyuchen Information | Poly Real vs. BTG Hotels Group | Poly Real vs. Shenzhen SDG Information | Poly Real vs. Tongding Interconnection Information |
| Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. Bank of China | Guangxi Wuzhou 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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