Correlation Between Road Environment and Guangzhou Boji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Road Environment Technology and Guangzhou Boji Medical, you can compare the effects of market volatilities on Road Environment and Guangzhou Boji 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 Road Environment with a short position of Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Guangzhou Boji.
Diversification Opportunities for Road Environment and Guangzhou Boji
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Road and Guangzhou is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical and Road Environment 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 Road Environment Technology are associated (or correlated) with Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Road Environment i.e., Road Environment and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Road Environment and Guangzhou Boji
Assuming the 90 days trading horizon Road Environment Technology is expected to under-perform the Guangzhou Boji. But the stock apears to be less risky and, when comparing its historical volatility, Road Environment Technology is 1.17 times less risky than Guangzhou Boji. The stock trades about -0.06 of its potential returns per unit of risk. The Guangzhou Boji Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 808.00 in Guangzhou Boji Medical on October 16, 2024 and sell it today you would lose (11.00) from holding Guangzhou Boji Medical or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Road Environment Tec |
| Guangzhou Boji Medical |
Road Environment and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Guangzhou Boji
The main advantage of trading using opposite Road Environment and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment position performs unexpectedly, Guangzhou Boji 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 Boji will offset losses from the drop in Guangzhou Boji's long position.| Road Environment vs. East Money Information | Road Environment vs. Digital China Information | Road Environment vs. Emdoor Information Co | Road Environment vs. Duzhe Publishing Media |
| Guangzhou Boji vs. Jiangsu Broadcasting Cable | Guangzhou Boji vs. Road Environment Technology | Guangzhou Boji vs. Hunan TV Broadcast | Guangzhou Boji vs. Zhongshan Broad Ocean Motor |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |