Correlation Between Guangxi Wuzhou and Zhongshan Public
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Zhongshan Public Utilities, you can compare the effects of market volatilities on Guangxi Wuzhou and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Zhongshan Public.
Diversification Opportunities for Guangxi Wuzhou and Zhongshan Public
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and Zhongshan is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Zhongshan Public go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Zhongshan Public
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.56 times more return on investment than Zhongshan Public. However, Guangxi Wuzhou is 1.56 times more volatile than Zhongshan Public Utilities. It trades about 0.03 of its potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.04 per unit of risk. If you would invest 342.00 in Guangxi Wuzhou Communications on October 16, 2024 and sell it today you would earn a total of 97.00 from holding Guangxi Wuzhou Communications or generate 28.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Zhongshan Public Uti |
Guangxi Wuzhou and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Zhongshan Public
The main advantage of trading using opposite Guangxi Wuzhou and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Guangxi Wuzhou vs. Jonjee Hi tech Industrial | Guangxi Wuzhou vs. Youyou Foods Co | Guangxi Wuzhou vs. Guangzhou Haige Communications | Guangxi Wuzhou vs. Beijing Sanyuan Foods |
| Zhongshan Public vs. Yankershop Food Co | Zhongshan Public vs. Juneyao Airlines | Zhongshan Public vs. Thinkon Semiconductor Jinzhou | Zhongshan Public vs. Shanghai Ziyan Foods |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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