Correlation Between Guangxi Wuzhou and Allgens Medical
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By analyzing existing cross correlation between Guangxi Wuzhou Communications and Allgens Medical Technology, you can compare the effects of market volatilities on Guangxi Wuzhou and Allgens Medical 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 Allgens Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Wuzhou and Allgens Medical.
Diversification Opportunities for Guangxi Wuzhou and Allgens Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangxi and Allgens is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Wuzhou Communications and Allgens Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allgens Medical Tech 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 Allgens Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allgens Medical Tech has no effect on the direction of Guangxi Wuzhou i.e., Guangxi Wuzhou and Allgens Medical go up and down completely randomly.
Pair Corralation between Guangxi Wuzhou and Allgens Medical
Assuming the 90 days trading horizon Guangxi Wuzhou Communications is expected to generate 1.01 times more return on investment than Allgens Medical. However, Guangxi Wuzhou is 1.01 times more volatile than Allgens Medical Technology. It trades about 0.14 of its potential returns per unit of risk. Allgens Medical Technology is currently generating about 0.11 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. Allgens Medical Technology
Performance |
| Timeline |
| Guangxi Wuzhou Commu |
| Allgens Medical Tech |
Guangxi Wuzhou and Allgens Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Wuzhou and Allgens Medical
The main advantage of trading using opposite Guangxi Wuzhou and Allgens Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Wuzhou position performs unexpectedly, Allgens Medical 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 Allgens Medical will offset losses from the drop in Allgens Medical'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 |
| Allgens Medical vs. Shanghai CEO Environmental | Allgens Medical vs. Anhui Jianghuai Automobile | Allgens Medical vs. Xiangyang Automobile Bearing | Allgens Medical vs. Guangxi Wuzhou Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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