Correlation Between Guangxi Wuzhou and Senci Electric
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Senci Electric Machinery, you can compare the effects of market volatilities on Guangxi Wuzhou and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Senci Electric.
Diversification Opportunities for Guangxi Wuzhou and Senci Electric
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Senci is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Senci Electric go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Senci Electric
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 2.15 times more return on investment than Senci Electric. However, Guangxi Wuzhou is 2.15 times more volatile than Senci Electric Machinery. It trades about 0.43 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.35 per unit of risk. If you would invest 388.00 in Guangxi Wuzhou Communications on September 27, 2024 and sell it today you would earn a total of 182.00 from holding Guangxi Wuzhou Communications or generate 46.91% 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. Senci Electric Machinery
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Senci Electric Machinery |
Guangxi Wuzhou and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Senci Electric
The main advantage of trading using opposite Guangxi Wuzhou and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric's long position.| Guangxi Wuzhou vs. Kweichow Moutai Co | Guangxi Wuzhou vs. NAURA Technology Group | Guangxi Wuzhou vs. Zhejiang Orient Gene | Guangxi Wuzhou vs. APT Medical |
| Senci Electric vs. Industrial and Commercial | Senci Electric vs. Agricultural Bank of | Senci Electric vs. China Construction Bank | Senci Electric vs. Bank of China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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