Correlation Between Guotai Epoint and Nanjing Vishee
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By analyzing existing cross correlation between Guotai Epoint Software and Nanjing Vishee Medical, you can compare the effects of market volatilities on Guotai Epoint and Nanjing Vishee 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 Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guotai Epoint and Nanjing Vishee.
Diversification Opportunities for Guotai Epoint and Nanjing Vishee
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guotai and Nanjing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Guotai Epoint Software and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical 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 Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Guotai Epoint i.e., Guotai Epoint and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Guotai Epoint and Nanjing Vishee
Assuming the 90 days trading horizon Guotai Epoint Software is expected to generate 1.05 times more return on investment than Nanjing Vishee. However, Guotai Epoint is 1.05 times more volatile than Nanjing Vishee Medical. It trades about -0.19 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.26 per unit of risk. If you would invest 3,071 in Guotai Epoint Software on October 25, 2024 and sell it today you would lose (271.00) from holding Guotai Epoint Software or give up 8.82% 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. Nanjing Vishee Medical
Performance |
| Timeline |
| Guotai Epoint Software |
| Nanjing Vishee Medical |
Guotai Epoint and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guotai Epoint and Nanjing Vishee
The main advantage of trading using opposite Guotai Epoint and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guotai Epoint position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Guotai Epoint vs. Kweichow Moutai Co | Guotai Epoint vs. NAURA Technology Group | Guotai Epoint vs. APT Medical | Guotai Epoint vs. BYD Co Ltd |
| Nanjing Vishee vs. Agricultural Bank of | Nanjing Vishee vs. Industrial and Commercial | Nanjing Vishee vs. Bank of China | Nanjing Vishee vs. China Construction Bank |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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