Correlation Between Zhongtong Guomai and Guangdong Silvere
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Guangdong Silvere Sci, you can compare the effects of market volatilities on Zhongtong Guomai and Guangdong Silvere 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 Zhongtong Guomai with a short position of Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Guangdong Silvere.
Diversification Opportunities for Zhongtong Guomai and Guangdong Silvere
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Guangdong is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Guangdong Silvere
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 2.26 times less return on investment than Guangdong Silvere. In addition to that, Zhongtong Guomai is 1.53 times more volatile than Guangdong Silvere Sci. It trades about 0.04 of its total potential returns per unit of risk. Guangdong Silvere Sci is currently generating about 0.14 per unit of volatility. If you would invest 608.00 in Guangdong Silvere Sci on September 2, 2024 and sell it today you would earn a total of 49.00 from holding Guangdong Silvere Sci or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Guangdong Silvere Sci
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Guangdong Silvere Sci |
Zhongtong Guomai and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Guangdong Silvere
The main advantage of trading using opposite Zhongtong Guomai and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Guangdong Silvere 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 Silvere will offset losses from the drop in Guangdong Silvere's long position.| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
| Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Shandong Gold Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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