Correlation Between Road Environment and Guangdong Xiongsu
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By analyzing existing cross correlation between Road Environment Technology and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Road Environment and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Guangdong Xiongsu.
Diversification Opportunities for Road Environment and Guangdong Xiongsu
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Road and Guangdong is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Road Environment i.e., Road Environment and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Road Environment and Guangdong Xiongsu
Assuming the 90 days trading horizon Road Environment Technology is expected to generate 0.8 times more return on investment than Guangdong Xiongsu. However, Road Environment Technology is 1.25 times less risky than Guangdong Xiongsu. It trades about -0.15 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.26 per unit of risk. If you would invest 1,388 in Road Environment Technology on October 28, 2024 and sell it today you would lose (106.00) from holding Road Environment Technology or give up 7.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Road Environment Tec |
| Guangdong Xiongsu |
Road Environment and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Guangdong Xiongsu
The main advantage of trading using opposite Road Environment and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment position performs unexpectedly, Guangdong Xiongsu 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 Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Road Environment vs. Industrial and Commercial | Road Environment vs. China Construction Bank | Road Environment vs. Agricultural Bank of | Road Environment vs. Bank of China |
| Guangdong Xiongsu vs. Anhui Fuhuang Steel | Guangdong Xiongsu vs. Road Environment Technology | Guangdong Xiongsu vs. Hangzhou Guotai Environmental | Guangdong Xiongsu vs. Eit Environmental Development |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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