Correlation Between China State and Gansu Huangtai
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By analyzing existing cross correlation between China State Construction and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on China State and Gansu Huangtai 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 China State with a short position of Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Gansu Huangtai.
Diversification Opportunities for China State and Gansu Huangtai
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Gansu is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine and China State 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 China State Construction are associated (or correlated) with Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of China State i.e., China State and Gansu Huangtai go up and down completely randomly.
Pair Corralation between China State and Gansu Huangtai
Assuming the 90 days trading horizon China State is expected to generate 4.55 times less return on investment than Gansu Huangtai. But when comparing it to its historical volatility, China State Construction is 1.97 times less risky than Gansu Huangtai. It trades about 0.05 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,167 in Gansu Huangtai Wine marketing on October 24, 2024 and sell it today you would earn a total of 467.00 from holding Gansu Huangtai Wine marketing or generate 40.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| China State Construction |
| Gansu Huangtai Wine |
China State and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Gansu Huangtai
The main advantage of trading using opposite China State and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| China State vs. Huasi Agricultural Development | China State vs. Longxing Chemical Stock | China State vs. Lutian Machinery Co | China State vs. HeBei Jinniu Chemical |
| Gansu Huangtai vs. China State Construction | Gansu Huangtai vs. Poly Real Estate | Gansu Huangtai vs. China Vanke Co | Gansu Huangtai vs. China Merchants Shekou |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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