Correlation Between Guangzhou Automobile and Beijing Roborock
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By analyzing existing cross correlation between Guangzhou Automobile Group and Beijing Roborock Technology, you can compare the effects of market volatilities on Guangzhou Automobile and Beijing Roborock 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 Beijing Roborock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Beijing Roborock.
Diversification Opportunities for Guangzhou Automobile and Beijing Roborock
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Beijing is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Beijing Roborock Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Roborock Tec 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 Beijing Roborock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Roborock Tec has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Beijing Roborock go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Beijing Roborock
Assuming the 90 days trading horizon Guangzhou Automobile is expected to generate 3.23 times less return on investment than Beijing Roborock. But when comparing it to its historical volatility, Guangzhou Automobile Group is 1.82 times less risky than Beijing Roborock. It trades about 0.16 of its potential returns per unit of risk. Beijing Roborock Technology is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 22,879 in Beijing Roborock Technology on November 28, 2024 and sell it today you would earn a total of 3,131 from holding Beijing Roborock Technology or generate 13.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Beijing Roborock Technology
Performance |
| Timeline |
| Guangzhou Automobile |
| Beijing Roborock Tec |
Guangzhou Automobile and Beijing Roborock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Beijing Roborock
The main advantage of trading using opposite Guangzhou Automobile and Beijing Roborock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Beijing Roborock 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 Beijing Roborock will offset losses from the drop in Beijing Roborock's long position.| Guangzhou Automobile vs. Financial Street Holdings | Guangzhou Automobile vs. Sinofibers Technology Co | Guangzhou Automobile vs. Industrial Bank Co | Guangzhou Automobile vs. Jiangsu Financial Leasing |
| Beijing Roborock vs. Linewell Software Co | Beijing Roborock vs. Guangzhou KingTeller Technology | Beijing Roborock vs. Keeson Technology Corp | Beijing Roborock vs. Bangyan Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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