Correlation Between Guobo Electronics and Guangdong Qunxing
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By analyzing existing cross correlation between Guobo Electronics Co and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Guobo Electronics and Guangdong Qunxing 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 Guobo Electronics with a short position of Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guobo Electronics and Guangdong Qunxing.
Diversification Opportunities for Guobo Electronics and Guangdong Qunxing
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guobo and Guangdong is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guobo Electronics Co and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys and Guobo Electronics 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 Guobo Electronics Co are associated (or correlated) with Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Guobo Electronics i.e., Guobo Electronics and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Guobo Electronics and Guangdong Qunxing
Assuming the 90 days trading horizon Guobo Electronics Co is expected to under-perform the Guangdong Qunxing. But the stock apears to be less risky and, when comparing its historical volatility, Guobo Electronics Co is 1.14 times less risky than Guangdong Qunxing. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Qunxing Toys is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 643.00 in Guangdong Qunxing Toys on October 31, 2024 and sell it today you would earn a total of 30.00 from holding Guangdong Qunxing Toys or generate 4.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Guobo Electronics Co vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Guobo Electronics |
| Guangdong Qunxing Toys |
Guobo Electronics and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guobo Electronics and Guangdong Qunxing
The main advantage of trading using opposite Guobo Electronics and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guobo Electronics position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Guobo Electronics vs. Xiwang Foodstuffs Co | Guobo Electronics vs. Lander Sports Development | Guobo Electronics vs. Guilin Seamild Foods | Guobo Electronics vs. Shenzhen Topway Video |
| Guangdong Qunxing vs. China Asset Management | Guangdong Qunxing vs. Sanbo Hospital Management | Guangdong Qunxing vs. Harvest Fund Management | Guangdong Qunxing vs. XinJiang GuoTong Pipeline |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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