Correlation Between Guangxi Wuzhou and Shanghai Yaoji
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Guangxi Wuzhou and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Shanghai Yaoji.
Diversification Opportunities for Guangxi Wuzhou and Shanghai Yaoji
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Shanghai is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Shanghai Yaoji
Assuming the 90 days trading horizon Guangxi Wuzhou is expected to generate 2.55 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Guangxi Wuzhou Communications is 1.59 times less risky than Shanghai Yaoji. It trades about 0.03 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Shanghai Yaoji Playing on November 2, 2024 and sell it today you would earn a total of 1,244 from holding Shanghai Yaoji Playing or generate 80.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Shanghai Yaoji Playing |
Guangxi Wuzhou and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Shanghai Yaoji
The main advantage of trading using opposite Guangxi Wuzhou and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. Kweichow Moutai Co | Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. China Mobile Limited |
| Shanghai Yaoji vs. China Life Insurance | Shanghai Yaoji vs. National Silicon Industry | Shanghai Yaoji vs. Shanghai OPM Biosciences | Shanghai Yaoji vs. Nanhua Bio Medicine |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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