Correlation Between Guangzhou Automobile and Shanghai Suochen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Automobile Group and Shanghai Suochen Information, you can compare the effects of market volatilities on Guangzhou Automobile and Shanghai Suochen 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 Shanghai Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Shanghai Suochen.
Diversification Opportunities for Guangzhou Automobile and Shanghai Suochen
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangzhou and Shanghai is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen Inf 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 Shanghai Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Shanghai Suochen go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Shanghai Suochen
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to under-perform the Shanghai Suochen. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Automobile Group is 2.12 times less risky than Shanghai Suochen. The stock trades about -0.09 of its potential returns per unit of risk. The Shanghai Suochen Information is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,263 in Shanghai Suochen Information on November 3, 2024 and sell it today you would earn a total of 913.00 from holding Shanghai Suochen Information or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Shanghai Suochen Information
Performance |
| Timeline |
| Guangzhou Automobile |
| Shanghai Suochen Inf |
Guangzhou Automobile and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Shanghai Suochen
The main advantage of trading using opposite Guangzhou Automobile and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Shanghai Suochen 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 Shanghai Suochen will offset losses from the drop in Shanghai Suochen's long position.| Guangzhou Automobile vs. China National Software | Guangzhou Automobile vs. Linkage Software Co | Guangzhou Automobile vs. Glodon Software Co | Guangzhou Automobile vs. Daoming OpticsChemical Co |
| Shanghai Suochen vs. Tinavi Medical Technologies | Shanghai Suochen vs. Chison Medical Technologies | Shanghai Suochen vs. Zoje Resources Investment | Shanghai Suochen vs. APT Medical |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |