Correlation Between Guangdong Investment and 207597DV4
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By analyzing existing cross correlation between Guangdong Investment Limited and CONNECTICUT LT PWR, you can compare the effects of market volatilities on Guangdong Investment and 207597DV4 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 207597DV4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and 207597DV4.
Diversification Opportunities for Guangdong Investment and 207597DV4
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and 207597DV4 is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and CONNECTICUT LT PWR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONNECTICUT LT PWR 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 207597DV4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONNECTICUT LT PWR has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and 207597DV4 go up and down completely randomly.
Pair Corralation between Guangdong Investment and 207597DV4
Assuming the 90 days horizon Guangdong Investment Limited is expected to under-perform the 207597DV4. In addition to that, Guangdong Investment is 1.31 times more volatile than CONNECTICUT LT PWR. It trades about -0.11 of its total potential returns per unit of risk. CONNECTICUT LT PWR is currently generating about 0.28 per unit of volatility. If you would invest 10,861 in CONNECTICUT LT PWR on August 30, 2024 and sell it today you would earn a total of 374.00 from holding CONNECTICUT LT PWR or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Guangdong Investment Limited vs. CONNECTICUT LT PWR
Performance |
| Timeline |
| Guangdong Investment |
| CONNECTICUT LT PWR |
Guangdong Investment and 207597DV4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and 207597DV4
The main advantage of trading using opposite Guangdong Investment and 207597DV4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, 207597DV4 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 207597DV4 will offset losses from the drop in 207597DV4's long position.| Guangdong Investment vs. Essential Utilities | Guangdong Investment vs. Guangdong Investment | Guangdong Investment vs. Anhui Conch Cement | Guangdong Investment vs. Beijing Enterprises Water |
| 207597DV4 vs. One Liberty Properties | 207597DV4 vs. Highway Holdings Limited | 207597DV4 vs. Guangdong Investment Limited | 207597DV4 vs. NioCorp Developments Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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