Correlation Between Guangxi Guiguan and Shenzhen Hans
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangxi Guiguan Electric and Shenzhen Hans CNC, you can compare the effects of market volatilities on Guangxi Guiguan and Shenzhen Hans 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 Guangxi Guiguan with a short position of Shenzhen Hans. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guiguan and Shenzhen Hans.
Diversification Opportunities for Guangxi Guiguan and Shenzhen Hans
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangxi and Shenzhen is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guiguan Electric and Shenzhen Hans CNC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hans CNC and Guangxi Guiguan 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 Guangxi Guiguan Electric are associated (or correlated) with Shenzhen Hans. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hans CNC has no effect on the direction of Guangxi Guiguan i.e., Guangxi Guiguan and Shenzhen Hans go up and down completely randomly.
Pair Corralation between Guangxi Guiguan and Shenzhen Hans
Assuming the 90 days trading horizon Guangxi Guiguan Electric is expected to under-perform the Shenzhen Hans. But the stock apears to be less risky and, when comparing its historical volatility, Guangxi Guiguan Electric is 1.89 times less risky than Shenzhen Hans. The stock trades about -0.1 of its potential returns per unit of risk. The Shenzhen Hans CNC is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 3,320 in Shenzhen Hans CNC on November 4, 2024 and sell it today you would earn a total of 486.00 from holding Shenzhen Hans CNC or generate 14.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangxi Guiguan Electric vs. Shenzhen Hans CNC
Performance |
Timeline |
Guangxi Guiguan Electric |
Shenzhen Hans CNC |
Guangxi Guiguan and Shenzhen Hans Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangxi Guiguan and Shenzhen Hans
The main advantage of trading using opposite Guangxi Guiguan and Shenzhen Hans positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guiguan position performs unexpectedly, Shenzhen Hans 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 Shenzhen Hans will offset losses from the drop in Shenzhen Hans' long position.Guangxi Guiguan vs. Dawning Information Industry | ||
Guangxi Guiguan vs. Hangzhou Gisway Information | ||
Guangxi Guiguan vs. Bonree Data Technology | ||
Guangxi Guiguan vs. Ningbo Homelink Eco iTech |
Shenzhen Hans vs. Ziel Home Furnishing | ||
Shenzhen Hans vs. Nanxing Furniture Machinery | ||
Shenzhen Hans vs. Beijing Enlight Media | ||
Shenzhen Hans vs. Shandong Longquan Pipeline |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum |