Correlation Between AUPU Home and Guangdong Brandmax
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By analyzing existing cross correlation between AUPU Home Style and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on AUPU Home and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUPU Home and Guangdong Brandmax.
Diversification Opportunities for AUPU Home and Guangdong Brandmax
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AUPU and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding AUPU Home Style and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of AUPU Home i.e., AUPU Home and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between AUPU Home and Guangdong Brandmax
Assuming the 90 days trading horizon AUPU Home is expected to generate 1.92 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, AUPU Home Style is 1.68 times less risky than Guangdong Brandmax. It trades about 0.04 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 683.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 337.00 from holding Guangdong Brandmax Marketing or generate 49.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AUPU Home Style vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| AUPU Home Style |
| Guangdong Brandmax |
AUPU Home and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AUPU Home and Guangdong Brandmax
The main advantage of trading using opposite AUPU Home and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUPU Home position performs unexpectedly, Guangdong Brandmax 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 Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| AUPU Home vs. Lutian Machinery Co | AUPU Home vs. China Longyuan Power | AUPU Home vs. PetroChina Co Ltd | AUPU Home vs. Bank of China |
| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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