Correlation Between Guangdong Investment and Bioneutra Internatio
Can any of the company-specific risk be diversified away by investing in both Guangdong Investment and Bioneutra Internatio at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Guangdong Investment and Bioneutra Internatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guangdong Investment Limited and Bioneutra Internatio, you can compare the effects of market volatilities on Guangdong Investment and Bioneutra Internatio 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 Investment with a short position of Bioneutra Internatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and Bioneutra Internatio.
Diversification Opportunities for Guangdong Investment and Bioneutra Internatio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangdong and Bioneutra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and Bioneutra Internatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioneutra Internatio and Guangdong Investment 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 Investment Limited are associated (or correlated) with Bioneutra Internatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioneutra Internatio has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and Bioneutra Internatio go up and down completely randomly.
Pair Corralation between Guangdong Investment and Bioneutra Internatio
If you would invest 57.00 in Guangdong Investment Limited on September 2, 2024 and sell it today you would earn a total of 4.00 from holding Guangdong Investment Limited or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Investment Limited vs. Bioneutra Internatio
Performance |
| Timeline |
| Guangdong Investment |
| Bioneutra Internatio |
Guangdong Investment and Bioneutra Internatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and Bioneutra Internatio
The main advantage of trading using opposite Guangdong Investment and Bioneutra Internatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, Bioneutra Internatio 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 Bioneutra Internatio will offset losses from the drop in Bioneutra Internatio's long position.| Guangdong Investment vs. Essential Utilities | Guangdong Investment vs. Anhui Conch Cement | Guangdong Investment vs. Endesa SA ADR | Guangdong Investment vs. HUMANA INC |
| Bioneutra Internatio vs. Hawkins | Bioneutra Internatio vs. Stepan Company | Bioneutra Internatio vs. Ainsworth Game Technology | Bioneutra Internatio vs. Ecoloclean Industrs |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets |