Correlation Between Guangxi Wuzhou and China Reform
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangxi Wuzhou Communications and China Reform Health, you can compare the effects of market volatilities on Guangxi Wuzhou and China Reform 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 Wuzhou with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and China Reform.
Diversification Opportunities for Guangxi Wuzhou and China Reform
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangxi and China is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and Guangxi Wuzhou 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 Wuzhou Communications are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and China Reform go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and China Reform
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.93 times more return on investment than China Reform. However, Guangxi Wuzhou is 1.93 times more volatile than China Reform Health. It trades about 0.08 of its potential returns per unit of risk. China Reform Health is currently generating about -0.41 per unit of risk. If you would invest 389.00 in Guangxi Wuzhou Communications on October 30, 2024 and sell it today you would earn a total of 45.00 from holding Guangxi Wuzhou Communications or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. China Reform Health
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| China Reform Health |
Guangxi Wuzhou and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and China Reform
The main advantage of trading using opposite Guangxi Wuzhou and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, China Reform 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 China Reform will offset losses from the drop in China Reform's long position.| Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. China Construction Bank | Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. Bank of China |
| China Reform vs. Bank of China | China Reform vs. Kweichow Moutai Co | China Reform vs. PetroChina Co Ltd | China Reform vs. Bank of Communications |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |