Correlation Between Guangzhou Fangbang and Industrial
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By analyzing existing cross correlation between Guangzhou Fangbang Electronics and Industrial and Commercial, you can compare the effects of market volatilities on Guangzhou Fangbang and Industrial 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 Guangzhou Fangbang with a short position of Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Fangbang and Industrial.
Diversification Opportunities for Guangzhou Fangbang and Industrial
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guangzhou and Industrial is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Fangbang Electronics and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial and Guangzhou Fangbang 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 Guangzhou Fangbang Electronics are associated (or correlated) with Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Guangzhou Fangbang i.e., Guangzhou Fangbang and Industrial go up and down completely randomly.
Pair Corralation between Guangzhou Fangbang and Industrial
Assuming the 90 days trading horizon Guangzhou Fangbang Electronics is expected to under-perform the Industrial. In addition to that, Guangzhou Fangbang is 2.83 times more volatile than Industrial and Commercial. It trades about -0.02 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.08 per unit of volatility. If you would invest 626.00 in Industrial and Commercial on October 15, 2024 and sell it today you would earn a total of 34.00 from holding Industrial and Commercial or generate 5.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Fangbang Electronics vs. Industrial and Commercial
Performance |
Timeline |
Guangzhou Fangbang |
Industrial and Commercial |
Guangzhou Fangbang and Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Fangbang and Industrial
The main advantage of trading using opposite Guangzhou Fangbang and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Fangbang position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.Guangzhou Fangbang vs. Universal Scientific Industrial | Guangzhou Fangbang vs. Jiaozuo Wanfang Aluminum | Guangzhou Fangbang vs. Porton Fine Chemicals | Guangzhou Fangbang vs. Shanghai Yanpu Metal |
Industrial vs. East Money Information | Industrial vs. Marssenger Kitchenware Co | Industrial vs. Guangzhou Ruoyuchen Information | Industrial vs. Sublime China Information |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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