Correlation Between Guangzhou Automobile and Cinda Securities
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By analyzing existing cross correlation between Guangzhou Automobile Group and Cinda Securities Co, you can compare the effects of market volatilities on Guangzhou Automobile and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Cinda Securities.
Diversification Opportunities for Guangzhou Automobile and Cinda Securities
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Cinda is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Cinda Securities go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Cinda Securities
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to generate 1.3 times more return on investment than Cinda Securities. However, Guangzhou Automobile is 1.3 times more volatile than Cinda Securities Co. It trades about -0.09 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.24 per unit of risk. If you would invest 894.00 in Guangzhou Automobile Group on November 3, 2024 and sell it today you would lose (34.00) from holding Guangzhou Automobile Group or give up 3.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Cinda Securities Co
Performance |
| Timeline |
| Guangzhou Automobile |
| Cinda Securities |
Guangzhou Automobile and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Cinda Securities
The main advantage of trading using opposite Guangzhou Automobile and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' long position.| Guangzhou Automobile vs. Soyea Technology Co | Guangzhou Automobile vs. Guangzhou KingTeller Technology | Guangzhou Automobile vs. Tieling Newcity Investment | Guangzhou Automobile vs. Montage Technology Co |
| Cinda Securities vs. Fujian Boss Software | Cinda Securities vs. Glodon Software Co | Cinda Securities vs. Do Fluoride Chemicals Co | Cinda Securities vs. Miracll Chemicals 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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