Correlation Between Guotai Epoint and Shenzhen Centralcon
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By analyzing existing cross correlation between Guotai Epoint Software and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Guotai Epoint and Shenzhen Centralcon 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 Guotai Epoint with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Shenzhen Centralcon.
Diversification Opportunities for Guotai Epoint and Shenzhen Centralcon
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guotai and Shenzhen is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Guotai Epoint 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 Guotai Epoint Software are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Guotai Epoint and Shenzhen Centralcon
Assuming the 90 days trading horizon Guotai Epoint Software is expected to generate 0.6 times more return on investment than Shenzhen Centralcon. However, Guotai Epoint Software is 1.66 times less risky than Shenzhen Centralcon. It trades about -0.53 of its potential returns per unit of risk. Shenzhen Centralcon Investment is currently generating about -0.45 per unit of risk. If you would invest 3,228 in Guotai Epoint Software on October 12, 2024 and sell it today you would lose (621.00) from holding Guotai Epoint Software or give up 19.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Guotai Epoint Software |
| Shenzhen Centralcon |
Guotai Epoint and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Shenzhen Centralcon
The main advantage of trading using opposite Guotai Epoint and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Guotai Epoint vs. Yingde Greatchem Chemicals | Guotai Epoint vs. Bus Online Co | Guotai Epoint vs. Dymatic Chemicals | Guotai Epoint vs. Porton Fine Chemicals |
| Shenzhen Centralcon vs. Guotai Epoint Software | Shenzhen Centralcon vs. Olympic Circuit Technology | Shenzhen Centralcon vs. Soyea Technology Co | Shenzhen Centralcon vs. Linewell Software Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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