Correlation Between Guangdong Investment and 00206RGM8
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By analyzing existing cross correlation between Guangdong Investment Limited and ATT INC 6375, you can compare the effects of market volatilities on Guangdong Investment and 00206RGM8 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 00206RGM8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and 00206RGM8.
Diversification Opportunities for Guangdong Investment and 00206RGM8
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and 00206RGM8 is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and ATT INC 6375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT INC 6375 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 00206RGM8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT INC 6375 has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and 00206RGM8 go up and down completely randomly.
Pair Corralation between Guangdong Investment and 00206RGM8
Assuming the 90 days horizon Guangdong Investment Limited is expected to generate 5.9 times more return on investment than 00206RGM8. However, Guangdong Investment is 5.9 times more volatile than ATT INC 6375. It trades about 0.03 of its potential returns per unit of risk. ATT INC 6375 is currently generating about 0.0 per unit of risk. If you would invest 81.00 in Guangdong Investment Limited on September 5, 2024 and sell it today you would lose (20.00) from holding Guangdong Investment Limited or give up 24.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.42% |
| Values | Daily Returns |
Guangdong Investment Limited vs. ATT INC 6375
Performance |
| Timeline |
| Guangdong Investment |
| ATT INC 6375 |
Guangdong Investment and 00206RGM8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and 00206RGM8
The main advantage of trading using opposite Guangdong Investment and 00206RGM8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, 00206RGM8 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 00206RGM8 will offset losses from the drop in 00206RGM8's long position.| Guangdong Investment vs. Artesian Resources | Guangdong Investment vs. Global Water Resources | Guangdong Investment vs. Essential Utilities | Guangdong Investment vs. American Water Works |
| 00206RGM8 vs. Hafnia Limited | 00206RGM8 vs. Verra Mobility Corp | 00206RGM8 vs. Guangdong Investment Limited | 00206RGM8 vs. Comstock Holding Companies |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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