Correlation Between Lushang Property and Guangzhou Zhujiang
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By analyzing existing cross correlation between Lushang Property Co and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Lushang Property and Guangzhou Zhujiang 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 Lushang Property with a short position of Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lushang Property and Guangzhou Zhujiang.
Diversification Opportunities for Lushang Property and Guangzhou Zhujiang
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lushang and Guangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lushang Property Co and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang and Lushang Property 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 Lushang Property Co are associated (or correlated) with Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Lushang Property i.e., Lushang Property and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Lushang Property and Guangzhou Zhujiang
Assuming the 90 days trading horizon Lushang Property Co is expected to under-perform the Guangzhou Zhujiang. In addition to that, Lushang Property is 1.56 times more volatile than Guangzhou Zhujiang Brewery. It trades about -0.03 of its total potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.01 per unit of volatility. If you would invest 916.00 in Guangzhou Zhujiang Brewery on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Guangzhou Zhujiang Brewery or generate 0.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lushang Property Co vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Lushang Property |
| Guangzhou Zhujiang |
Lushang Property and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lushang Property and Guangzhou Zhujiang
The main advantage of trading using opposite Lushang Property and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lushang Property position performs unexpectedly, Guangzhou Zhujiang 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 Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Lushang Property vs. Changchun BCHT Biotechnology | Lushang Property vs. Shenzhen Bioeasy Biotechnology | Lushang Property vs. Guangzhou Dongfang Hotel | Lushang Property vs. Hua Xia Bank |
| Guangzhou Zhujiang vs. Vanfund Urban Investment | Guangzhou Zhujiang vs. Suzhou Xingye Material | Guangzhou Zhujiang vs. Metro Investment Development | Guangzhou Zhujiang vs. Western Metal Materials |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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