Correlation Between Guangxi Wuzhou and Shandong Sinoglory
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Shandong Sinoglory Health, you can compare the effects of market volatilities on Guangxi Wuzhou and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Shandong Sinoglory.
Diversification Opportunities for Guangxi Wuzhou and Shandong Sinoglory
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangxi and Shandong is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Shandong Sinoglory
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.04 times more return on investment than Shandong Sinoglory. However, Guangxi Wuzhou is 1.04 times more volatile than Shandong Sinoglory Health. It trades about 0.04 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about -0.03 per unit of risk. If you would invest 342.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 115.00 from holding Guangxi Wuzhou Communications or generate 33.63% 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. Shandong Sinoglory Health
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Shandong Sinoglory Health |
Guangxi Wuzhou and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Shandong Sinoglory
The main advantage of trading using opposite Guangxi Wuzhou and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou vs. Hainan Mining Co |
| Shandong Sinoglory vs. Guangxi Wuzhou Communications | Shandong Sinoglory vs. Jilin Chemical Fibre | Shandong Sinoglory vs. Wuxi Chemical Equipment | Shandong Sinoglory vs. Quectel Wireless Solutions |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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