Correlation Between Guangdong Cellwise and China Enterprise
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By analyzing existing cross correlation between Guangdong Cellwise Microelectronics and China Enterprise Co, you can compare the effects of market volatilities on Guangdong Cellwise and China Enterprise 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 Guangdong Cellwise with a short position of China Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Cellwise and China Enterprise.
Diversification Opportunities for Guangdong Cellwise and China Enterprise
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Cellwise Microelectr and China Enterprise Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Enterprise and Guangdong Cellwise 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 Guangdong Cellwise Microelectronics are associated (or correlated) with China Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Enterprise has no effect on the direction of Guangdong Cellwise i.e., Guangdong Cellwise and China Enterprise go up and down completely randomly.
Pair Corralation between Guangdong Cellwise and China Enterprise
Assuming the 90 days trading horizon Guangdong Cellwise Microelectronics is expected to generate 0.94 times more return on investment than China Enterprise. However, Guangdong Cellwise Microelectronics is 1.07 times less risky than China Enterprise. It trades about 0.2 of its potential returns per unit of risk. China Enterprise Co is currently generating about -0.04 per unit of risk. If you would invest 4,868 in Guangdong Cellwise Microelectronics on September 28, 2024 and sell it today you would earn a total of 572.00 from holding Guangdong Cellwise Microelectronics or generate 11.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Cellwise Microelectr vs. China Enterprise Co
Performance |
| Timeline |
| Guangdong Cellwise |
| China Enterprise |
Guangdong Cellwise and China Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Cellwise and China Enterprise
The main advantage of trading using opposite Guangdong Cellwise and China Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Cellwise position performs unexpectedly, China Enterprise 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 China Enterprise will offset losses from the drop in China Enterprise's long position.| Guangdong Cellwise vs. Jiangsu Jinling Sports | Guangdong Cellwise vs. Union Semiconductor Co | Guangdong Cellwise vs. Wuhan Hvsen Biotechnology | Guangdong Cellwise vs. Shuhua Sports Co |
| China Enterprise vs. INKON Life Technology | China Enterprise vs. Chahua Modern Housewares | China Enterprise vs. Anhui Deli Household | China Enterprise vs. China World Trade |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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