Correlation Between Guangdong Ellington and China Minmetals
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By analyzing existing cross correlation between Guangdong Ellington Electronics and China Minmetals Rare, you can compare the effects of market volatilities on Guangdong Ellington and China Minmetals 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 Guangdong Ellington with a short position of China Minmetals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Ellington and China Minmetals.
Diversification Opportunities for Guangdong Ellington and China Minmetals
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and China is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Ellington Electronic and China Minmetals Rare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Minmetals Rare and Guangdong Ellington 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 Guangdong Ellington Electronics are associated (or correlated) with China Minmetals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Minmetals Rare has no effect on the direction of Guangdong Ellington i.e., Guangdong Ellington and China Minmetals go up and down completely randomly.
Pair Corralation between Guangdong Ellington and China Minmetals
Assuming the 90 days trading horizon Guangdong Ellington Electronics is expected to generate 1.08 times more return on investment than China Minmetals. However, Guangdong Ellington is 1.08 times more volatile than China Minmetals Rare. It trades about 0.12 of its potential returns per unit of risk. China Minmetals Rare is currently generating about 0.07 per unit of risk. If you would invest 686.00 in Guangdong Ellington Electronics on November 3, 2024 and sell it today you would earn a total of 330.00 from holding Guangdong Ellington Electronics or generate 48.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Ellington Electronic vs. China Minmetals Rare
Performance |
| Timeline |
| Guangdong Ellington |
| China Minmetals Rare |
Guangdong Ellington and China Minmetals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Ellington and China Minmetals
The main advantage of trading using opposite Guangdong Ellington and China Minmetals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Ellington position performs unexpectedly, China Minmetals 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 China Minmetals will offset losses from the drop in China Minmetals' long position.| Guangdong Ellington vs. Winner Medical Co | Guangdong Ellington vs. Easyhome New Retail | Guangdong Ellington vs. Eyebright Medical Technology | Guangdong Ellington vs. Tinavi Medical Technologies |
| China Minmetals vs. Xiangyang Automobile Bearing | China Minmetals vs. Anhui Jianghuai Automobile | China Minmetals vs. Iat Automobile Technology | China Minmetals vs. JCHX Mining Management |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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