Correlation Between Guangxi Wuzhou and Emdoor Information
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Emdoor Information Co, you can compare the effects of market volatilities on Guangxi Wuzhou and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Emdoor Information.
Diversification Opportunities for Guangxi Wuzhou and Emdoor Information
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Emdoor is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Emdoor Information go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Emdoor Information
Assuming the 90 days trading horizon Guangxi Wuzhou is expected to generate 1.21 times less return on investment than Emdoor Information. But when comparing it to its historical volatility, Guangxi Wuzhou Communications is 1.42 times less risky than Emdoor Information. It trades about 0.09 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,404 in Emdoor Information Co on October 18, 2024 and sell it today you would earn a total of 1,076 from holding Emdoor Information Co or generate 31.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Emdoor Information Co
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Emdoor Information |
Guangxi Wuzhou and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Emdoor Information
The main advantage of trading using opposite Guangxi Wuzhou and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Guangxi Wuzhou vs. Xinjiang Beixin RoadBridge | Guangxi Wuzhou vs. Shanghai Broadband Technology | Guangxi Wuzhou vs. Hunan TV Broadcast | Guangxi Wuzhou vs. Guizhou BroadcastingTV Info |
| Emdoor Information vs. Guangxi Wuzhou Communications | Emdoor Information vs. Xizi Clean Energy | Emdoor Information vs. Hainan Airlines Co | Emdoor Information vs. Shaanxi Meineng Clean |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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