Correlation Between Piotech and Guotai Epoint
Specify exactly 2 symbols:
By analyzing existing cross correlation between Piotech Inc A and Guotai Epoint Software, you can compare the effects of market volatilities on Piotech and Guotai Epoint 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 Piotech with a short position of Guotai Epoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Guotai Epoint.
Diversification Opportunities for Piotech and Guotai Epoint
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Piotech and Guotai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Guotai Epoint Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guotai Epoint Software and Piotech 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 Piotech Inc A are associated (or correlated) with Guotai Epoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guotai Epoint Software has no effect on the direction of Piotech i.e., Piotech and Guotai Epoint go up and down completely randomly.
Pair Corralation between Piotech and Guotai Epoint
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Guotai Epoint. But the stock apears to be less risky and, when comparing its historical volatility, Piotech Inc A is 1.2 times less risky than Guotai Epoint. The stock trades about -0.39 of its potential returns per unit of risk. The Guotai Epoint Software is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 3,149 in Guotai Epoint Software on October 30, 2024 and sell it today you would lose (197.00) from holding Guotai Epoint Software or give up 6.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Piotech Inc A vs. Guotai Epoint Software
Performance |
| Timeline |
| Piotech Inc A |
| Guotai Epoint Software |
Piotech and Guotai Epoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Guotai Epoint
The main advantage of trading using opposite Piotech and Guotai Epoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech position performs unexpectedly, Guotai Epoint 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 Guotai Epoint will offset losses from the drop in Guotai Epoint's long position.| Piotech vs. Jiangsu Phoenix Publishing | Piotech vs. Chinese Universe Publishing | Piotech vs. Beijing Kaiwen Education | Piotech vs. CSSC Offshore Marine |
| Guotai Epoint vs. Uroica Mining Safety | Guotai Epoint vs. Rising Nonferrous Metals | Guotai Epoint vs. Xiandai Investment Co | Guotai Epoint vs. Jiangsu Yueda Investment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |