Correlation Between Long Yuan and Gansu Huangtai
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By analyzing existing cross correlation between Long Yuan Construction and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Long Yuan and Gansu Huangtai 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 Long Yuan with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and Gansu Huangtai.
Diversification Opportunities for Long Yuan and Gansu Huangtai
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Long and Gansu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and Long Yuan 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 Long Yuan Construction are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Long Yuan i.e., Long Yuan and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Long Yuan and Gansu Huangtai
Assuming the 90 days trading horizon Long Yuan Construction is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Long Yuan Construction is 1.71 times less risky than Gansu Huangtai. The stock trades about -0.19 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,553 in Gansu Huangtai Wine marketing on October 12, 2024 and sell it today you would earn a total of 149.00 from holding Gansu Huangtai Wine marketing or generate 9.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Long Yuan Construction vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Long Yuan Construction |
| Gansu Huangtai Wine |
Long Yuan and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and Gansu Huangtai
The main advantage of trading using opposite Long Yuan and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Long Yuan vs. Agricultural Bank of | Long Yuan vs. Industrial and Commercial | Long Yuan vs. Bank of China | Long Yuan vs. PetroChina Co Ltd |
| Gansu Huangtai vs. Anhui Tongguan Copper | Gansu Huangtai vs. Qingdao Foods Co | Gansu Huangtai vs. Shanghai Yanpu Metal | Gansu Huangtai vs. Dalian Thermal Power |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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