Correlation Between Guotai Epoint and Gem Year
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By analyzing existing cross correlation between Guotai Epoint Software and Gem Year Industrial Co, you can compare the effects of market volatilities on Guotai Epoint and Gem Year 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 Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Gem Year.
Diversification Opportunities for Guotai Epoint and Gem Year
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guotai and Gem is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial 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 Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and Gem Year go up and down completely randomly.
Pair Corralation between Guotai Epoint and Gem Year
Assuming the 90 days trading horizon Guotai Epoint Software is expected to under-perform the Gem Year. In addition to that, Guotai Epoint is 1.6 times more volatile than Gem Year Industrial Co. It trades about -0.03 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.0 per unit of volatility. If you would invest 468.00 in Gem Year Industrial Co on October 16, 2024 and sell it today you would lose (48.00) from holding Gem Year Industrial Co or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guotai Epoint Software vs. Gem Year Industrial Co
Performance |
| Timeline |
| Guotai Epoint Software |
| Gem Year Industrial |
Guotai Epoint and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Gem Year
The main advantage of trading using opposite Guotai Epoint and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Guotai Epoint vs. China Life Insurance | Guotai Epoint vs. Cinda Securities Co | Guotai Epoint vs. Piotech Inc A | Guotai Epoint vs. Dongxing Sec Co |
| Gem Year vs. Unisplendour Corp | Gem Year vs. Financial Street Holdings | Gem Year vs. Tongyu Communication | Gem Year vs. Ningbo Tech Bank 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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