Correlation Between Zhangjiagang Freetrade and Guangdong Liantai
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Zhangjiagang Freetrade and Guangdong Liantai 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 Zhangjiagang Freetrade with a short position of Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Guangdong Liantai.
Diversification Opportunities for Zhangjiagang Freetrade and Guangdong Liantai
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhangjiagang and Guangdong is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science are associated (or correlated) with Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Guangdong Liantai
Assuming the 90 days trading horizon Zhangjiagang Freetrade Science is expected to generate 0.91 times more return on investment than Guangdong Liantai. However, Zhangjiagang Freetrade Science is 1.1 times less risky than Guangdong Liantai. It trades about -0.01 of its potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about -0.03 per unit of risk. If you would invest 427.00 in Zhangjiagang Freetrade Science on September 2, 2024 and sell it today you would lose (44.00) from holding Zhangjiagang Freetrade Science or give up 10.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| Guangdong Liantai |
Zhangjiagang Freetrade and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Guangdong Liantai
The main advantage of trading using opposite Zhangjiagang Freetrade and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade position performs unexpectedly, Guangdong Liantai 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 Liantai will offset losses from the drop in Guangdong Liantai's long position.| Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. China Construction Bank | Zhangjiagang Freetrade vs. Bank of China |
| Guangdong Liantai vs. Anhui Deli Household | Guangdong Liantai vs. Guangzhou Restaurants Group | Guangdong Liantai vs. Zhangjiagang Freetrade Science | Guangdong Liantai vs. Hua Xia Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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