Correlation Between Guotai Epoint and GRG Banking
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By analyzing existing cross correlation between Guotai Epoint Software and GRG Banking Equipment, you can compare the effects of market volatilities on Guotai Epoint and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and GRG Banking.
Diversification Opportunities for Guotai Epoint and GRG Banking
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guotai and GRG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and GRG Banking go up and down completely randomly.
Pair Corralation between Guotai Epoint and GRG Banking
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the GRG Banking. In addition to that, Guotai Epoint is 1.55 times more volatile than GRG Banking Equipment. It trades about -0.02 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about 0.02 per unit of volatility. If you would invest 1,045 in GRG Banking Equipment on November 2, 2024 and sell it today you would earn a total of 68.00 from holding GRG Banking Equipment or generate 6.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. GRG Banking Equipment
Performance |
| Timeline |
| Guotai Epoint Software |
| GRG Banking Equipment |
Guotai Epoint and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and GRG Banking
The main advantage of trading using opposite Guotai Epoint and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's long position.| Guotai Epoint vs. Industrial and Commercial | Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. Agricultural Bank of | Guotai Epoint vs. China Mobile Limited |
| GRG Banking vs. Industrial and Commercial | GRG Banking vs. Kweichow Moutai Co | GRG Banking vs. Agricultural Bank of | GRG Banking vs. China Mobile Limited |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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