Correlation Between Guangxi Wuzhou and Songz Automobile
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Songz Automobile Air, you can compare the effects of market volatilities on Guangxi Wuzhou and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Songz Automobile.
Diversification Opportunities for Guangxi Wuzhou and Songz Automobile
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangxi and Songz is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Songz Automobile go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Songz Automobile
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 2.26 times more return on investment than Songz Automobile. However, Guangxi Wuzhou is 2.26 times more volatile than Songz Automobile Air. It trades about -0.01 of its potential returns per unit of risk. Songz Automobile Air is currently generating about -0.15 per unit of risk. If you would invest 469.00 in Guangxi Wuzhou Communications on October 17, 2024 and sell it today you would lose (17.00) from holding Guangxi Wuzhou Communications or give up 3.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Songz Automobile Air
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Songz Automobile Air |
Guangxi Wuzhou and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Songz Automobile
The main advantage of trading using opposite Guangxi Wuzhou and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile'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 |
| Songz Automobile vs. PKU HealthCare Corp | Songz Automobile vs. Humanwell Healthcare Group | Songz Automobile vs. Everjoy Health Group | Songz Automobile vs. Anhui Huaren Health |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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