Correlation Between Guangxi Wuzhou and HeNan Splendor
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and HeNan Splendor Science, you can compare the effects of market volatilities on Guangxi Wuzhou and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and HeNan Splendor.
Diversification Opportunities for Guangxi Wuzhou and HeNan Splendor
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangxi and HeNan is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and HeNan Splendor go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and HeNan Splendor
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.6 times more return on investment than HeNan Splendor. However, Guangxi Wuzhou is 1.6 times more volatile than HeNan Splendor Science. It trades about -0.05 of its potential returns per unit of risk. HeNan Splendor Science is currently generating about -0.11 per unit of risk. If you would invest 490.00 in Guangxi Wuzhou Communications on October 18, 2024 and sell it today you would lose (38.00) from holding Guangxi Wuzhou Communications or give up 7.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. HeNan Splendor Science
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| HeNan Splendor Science |
Guangxi Wuzhou and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and HeNan Splendor
The main advantage of trading using opposite Guangxi Wuzhou and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Guangxi Wuzhou vs. China Petroleum Chemical | Guangxi Wuzhou vs. PetroChina Co Ltd | Guangxi Wuzhou vs. China State Construction | Guangxi Wuzhou vs. China Railway Group |
| HeNan Splendor vs. Beijing Kaiwen Education | HeNan Splendor vs. Sinocat Environmental Technology | HeNan Splendor vs. Guangdong Liantai Environmental | HeNan Splendor vs. Penyao Environmental Protection |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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