Correlation Between Guangxi Wuzhou and Shanghai V
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Shanghai V Test Semiconductor, you can compare the effects of market volatilities on Guangxi Wuzhou and Shanghai V 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 V. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Shanghai V.
Diversification Opportunities for Guangxi Wuzhou and Shanghai V
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangxi and Shanghai is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Shanghai V Test Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai V Test 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 V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai V Test has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Shanghai V go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Shanghai V
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 0.56 times more return on investment than Shanghai V. However, Guangxi Wuzhou Communications is 1.79 times less risky than Shanghai V. It trades about 0.04 of its potential returns per unit of risk. Shanghai V Test Semiconductor is currently generating about 0.0 per unit of risk. If you would invest 342.00 in Guangxi Wuzhou Communications on October 13, 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. Shanghai V Test Semiconductor
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Shanghai V Test |
Guangxi Wuzhou and Shanghai V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Shanghai V
The main advantage of trading using opposite Guangxi Wuzhou and Shanghai V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Shanghai V 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 V will offset losses from the drop in Shanghai V's long position.| Guangxi Wuzhou vs. Guangzhou Automobile Group | Guangxi Wuzhou vs. Sinomach Automobile Co | Guangxi Wuzhou vs. Metro Investment Development | Guangxi Wuzhou vs. Zhejiang Qianjiang Motorcycle |
| Shanghai V vs. Runjian Communication Co | Shanghai V vs. Haima Automobile Group | Shanghai V vs. Guangxi Wuzhou Communications | Shanghai V vs. Hangzhou Pinming Software |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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