Correlation Between Servyou Software and Guangdong Tengen
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By analyzing existing cross correlation between Servyou Software Group and Guangdong Tengen Industrial, you can compare the effects of market volatilities on Servyou Software and Guangdong Tengen 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 Servyou Software with a short position of Guangdong Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Servyou Software and Guangdong Tengen.
Diversification Opportunities for Servyou Software and Guangdong Tengen
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Servyou and Guangdong is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Servyou Software Group and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind and Servyou Software 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 Servyou Software Group are associated (or correlated) with Guangdong Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of Servyou Software i.e., Servyou Software and Guangdong Tengen go up and down completely randomly.
Pair Corralation between Servyou Software and Guangdong Tengen
Assuming the 90 days trading horizon Servyou Software Group is expected to generate 1.16 times more return on investment than Guangdong Tengen. However, Servyou Software is 1.16 times more volatile than Guangdong Tengen Industrial. It trades about 0.09 of its potential returns per unit of risk. Guangdong Tengen Industrial is currently generating about 0.09 per unit of risk. If you would invest 2,431 in Servyou Software Group on November 3, 2024 and sell it today you would earn a total of 839.00 from holding Servyou Software Group or generate 34.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Servyou Software Group vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| Servyou Software |
| Guangdong Tengen Ind |
Servyou Software and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Servyou Software and Guangdong Tengen
The main advantage of trading using opposite Servyou Software and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Servyou Software position performs unexpectedly, Guangdong Tengen 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 Guangdong Tengen will offset losses from the drop in Guangdong Tengen's long position.| Servyou Software vs. Ningbo Fangzheng Automobile | Servyou Software vs. Liaoning Chengda Biotechnology | Servyou Software vs. China World Trade | Servyou Software vs. Easyhome New Retail |
| Guangdong Tengen vs. Guangzhou Seagull Kitchen | Guangdong Tengen vs. JCHX Mining Management | Guangdong Tengen vs. Chengtun Mining Group | Guangdong Tengen vs. GRINM Semiconductor Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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