Correlation Between Guangxi Wuzhou and Shanghai Shuixing
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Shanghai Shuixing Home, you can compare the effects of market volatilities on Guangxi Wuzhou and Shanghai Shuixing 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 Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Shanghai Shuixing.
Diversification Opportunities for Guangxi Wuzhou and Shanghai Shuixing
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Shanghai is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Shanghai Shuixing
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.49 times more return on investment than Shanghai Shuixing. However, Guangxi Wuzhou is 1.49 times more volatile than Shanghai Shuixing Home. It trades about 0.09 of its potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.04 per unit of risk. If you would invest 405.00 in Guangxi Wuzhou Communications on October 12, 2024 and sell it today you would earn a total of 30.00 from holding Guangxi Wuzhou Communications or generate 7.41% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Shanghai Shuixing Home |
Guangxi Wuzhou and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Shanghai Shuixing
The main advantage of trading using opposite Guangxi Wuzhou and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing's long position.| Guangxi Wuzhou vs. Telling Telecommunication Holding | Guangxi Wuzhou vs. Fujian Oriental Silver | Guangxi Wuzhou vs. Quectel Wireless Solutions | Guangxi Wuzhou vs. Allwin Telecommunication Co |
| Shanghai Shuixing vs. Guangxi Wuzhou Communications | Shanghai Shuixing vs. JuneYao Dairy Co | Shanghai Shuixing vs. Guilin Seamild Foods | Shanghai Shuixing vs. Hangzhou Arcvideo Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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