Correlation Between AUPU Home and Guangzhou Dongfang
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By analyzing existing cross correlation between AUPU Home Style and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on AUPU Home and Guangzhou Dongfang 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 AUPU Home with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Guangzhou Dongfang.
Diversification Opportunities for AUPU Home and Guangzhou Dongfang
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AUPU and Guangzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and AUPU Home 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 AUPU Home Style are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of AUPU Home i.e., AUPU Home and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between AUPU Home and Guangzhou Dongfang
Assuming the 90 days trading horizon AUPU Home Style is expected to generate 1.0 times more return on investment than Guangzhou Dongfang. However, AUPU Home Style is 1.0 times less risky than Guangzhou Dongfang. It trades about -0.08 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about -0.16 per unit of risk. If you would invest 1,106 in AUPU Home Style on October 28, 2024 and sell it today you would lose (45.00) from holding AUPU Home Style or give up 4.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| AUPU Home Style |
| Guangzhou Dongfang Hotel |
AUPU Home and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Guangzhou Dongfang
The main advantage of trading using opposite AUPU Home and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| AUPU Home vs. Zoje Resources Investment | AUPU Home vs. Tieling Newcity Investment | AUPU Home vs. Zhejiang Construction Investment | AUPU Home vs. Wuhan Hvsen Biotechnology |
| Guangzhou Dongfang vs. Pengxin International Mining | Guangzhou Dongfang vs. Guangdong Qunxing Toys | Guangzhou Dongfang vs. Shenzhen Zqgame | Guangzhou Dongfang vs. Bank of Communications |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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