Correlation Between Shandong Homey and Guangdong Brandmax
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By analyzing existing cross correlation between Shandong Homey Aquatic and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Shandong Homey and Guangdong Brandmax 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 Shandong Homey with a short position of Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Homey and Guangdong Brandmax.
Diversification Opportunities for Shandong Homey and Guangdong Brandmax
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shandong and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Homey Aquatic and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax and Shandong Homey 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 Shandong Homey Aquatic are associated (or correlated) with Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Shandong Homey i.e., Shandong Homey and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Shandong Homey and Guangdong Brandmax
Assuming the 90 days trading horizon Shandong Homey is expected to generate 2.95 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Shandong Homey Aquatic is 1.62 times less risky than Guangdong Brandmax. It trades about 0.02 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 337.00 from holding Guangdong Brandmax Marketing or generate 49.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Homey Aquatic vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Shandong Homey Aquatic |
| Guangdong Brandmax |
Shandong Homey and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Homey and Guangdong Brandmax
The main advantage of trading using opposite Shandong Homey and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Homey position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Shandong Homey vs. Zhongrun Resources Investment | Shandong Homey vs. Shenzhen Centralcon Investment | Shandong Homey vs. Shaanxi Energy Investment | Shandong Homey vs. Zhongtong Guomai Communication |
| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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