Correlation Between Guangxi Wuzhou and Guizhou Chanhen
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Guangxi Wuzhou and Guizhou Chanhen 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 Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Guizhou Chanhen.
Diversification Opportunities for Guangxi Wuzhou and Guizhou Chanhen
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Guizhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical 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 Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Guizhou Chanhen
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.92 times more return on investment than Guizhou Chanhen. However, Guangxi Wuzhou Communications is 1.09 times less risky than Guizhou Chanhen. It trades about 0.03 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about 0.0 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Guizhou Chanhen Chemical |
Guangxi Wuzhou and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Guizhou Chanhen
The main advantage of trading using opposite Guangxi Wuzhou and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Guangxi Wuzhou vs. Anhui Jianghuai Automobile | Guangxi Wuzhou vs. Songz Automobile Air | Guangxi Wuzhou vs. Fiberhome Telecommunication Technologies | Guangxi Wuzhou vs. Huizhou Speed Wireless |
| Guizhou Chanhen vs. Guangxi Wuzhou Communications | Guizhou Chanhen vs. Gan Yuan Foods | Guizhou Chanhen vs. Xiwang Foodstuffs Co | Guizhou Chanhen vs. Runjian Communication Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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