Correlation Between Guangzhou Automobile and Sportsoul
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By analyzing existing cross correlation between Guangzhou Automobile Group and Sportsoul Co Ltd, you can compare the effects of market volatilities on Guangzhou Automobile and Sportsoul 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 Guangzhou Automobile with a short position of Sportsoul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Sportsoul.
Diversification Opportunities for Guangzhou Automobile and Sportsoul
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Sportsoul is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Sportsoul Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsoul and Guangzhou Automobile 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 Guangzhou Automobile Group are associated (or correlated) with Sportsoul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsoul has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Sportsoul go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Sportsoul
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to generate 0.54 times more return on investment than Sportsoul. However, Guangzhou Automobile Group is 1.86 times less risky than Sportsoul. It trades about -0.37 of its potential returns per unit of risk. Sportsoul Co Ltd is currently generating about -0.35 per unit of risk. If you would invest 977.00 in Guangzhou Automobile Group on October 14, 2024 and sell it today you would lose (150.00) from holding Guangzhou Automobile Group or give up 15.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Sportsoul Co Ltd
Performance |
| Timeline |
| Guangzhou Automobile |
| Sportsoul |
Guangzhou Automobile and Sportsoul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Sportsoul
The main advantage of trading using opposite Guangzhou Automobile and Sportsoul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Sportsoul 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 Sportsoul will offset losses from the drop in Sportsoul's long position.| Guangzhou Automobile vs. Chongqing Road Bridge | Guangzhou Automobile vs. Xizi Clean Energy | Guangzhou Automobile vs. Iat Automobile Technology | Guangzhou Automobile vs. Jiugui Liquor Co |
| Sportsoul vs. Lutian Machinery Co | Sportsoul vs. Guangzhou Automobile Group | Sportsoul vs. Masterwork Machinery | Sportsoul vs. Hunan Tyen Machinery |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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