Correlation Between Guangxi Wuzhou and Beijing Enlight
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Beijing Enlight Media, you can compare the effects of market volatilities on Guangxi Wuzhou and Beijing Enlight 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 Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Beijing Enlight.
Diversification Opportunities for Guangxi Wuzhou and Beijing Enlight
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and Beijing is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight Media 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 Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Beijing Enlight go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Beijing Enlight
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.97 times more return on investment than Beijing Enlight. However, Guangxi Wuzhou Communications is 1.03 times less risky than Beijing Enlight. It trades about 0.14 of its potential returns per unit of risk. Beijing Enlight Media is currently generating about 0.13 per unit of risk. If you would invest 326.00 in Guangxi Wuzhou Communications on October 18, 2024 and sell it today you would earn a total of 126.00 from holding Guangxi Wuzhou Communications or generate 38.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Wuzhou Communications vs. Beijing Enlight Media
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Beijing Enlight Media |
Guangxi Wuzhou and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Beijing Enlight
The main advantage of trading using opposite Guangxi Wuzhou and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight'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 |
| Beijing Enlight vs. Guangxi Wuzhou Communications | Beijing Enlight vs. Iat Automobile Technology | Beijing Enlight vs. China Mobile Limited | Beijing Enlight vs. Dongfeng Automobile 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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