Correlation Between Caihong Display and Guangzhou Boji
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By analyzing existing cross correlation between Caihong Display Devices and Guangzhou Boji Medical, you can compare the effects of market volatilities on Caihong Display and Guangzhou Boji 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 Caihong Display with a short position of Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Guangzhou Boji.
Diversification Opportunities for Caihong Display and Guangzhou Boji
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Caihong and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical and Caihong Display 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 Caihong Display Devices are associated (or correlated) with Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Caihong Display i.e., Caihong Display and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Caihong Display and Guangzhou Boji
Assuming the 90 days trading horizon Caihong Display Devices is expected to generate 0.81 times more return on investment than Guangzhou Boji. However, Caihong Display Devices is 1.24 times less risky than Guangzhou Boji. It trades about 0.04 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about 0.01 per unit of risk. If you would invest 584.00 in Caihong Display Devices on September 2, 2024 and sell it today you would earn a total of 113.00 from holding Caihong Display Devices or generate 19.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Caihong Display Devices |
| Guangzhou Boji Medical |
Caihong Display and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Guangzhou Boji
The main advantage of trading using opposite Caihong Display and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.| Caihong Display vs. Cultural Investment Holdings | Caihong Display vs. Gome Telecom Equipment | Caihong Display vs. Bus Online Co | Caihong Display vs. Zotye Automobile Co |
| Guangzhou Boji vs. China Life Insurance | Guangzhou Boji vs. Cinda Securities Co | Guangzhou Boji vs. Piotech Inc A | Guangzhou Boji vs. Shanghai OPM Biosciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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