Correlation Between Guangdong Investment and DELHAIZE
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By analyzing existing cross correlation between Guangdong Investment Limited and DELHAIZE GROUP SA, you can compare the effects of market volatilities on Guangdong Investment and DELHAIZE 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 DELHAIZE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and DELHAIZE.
Diversification Opportunities for Guangdong Investment and DELHAIZE
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and DELHAIZE is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and DELHAIZE GROUP SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DELHAIZE GROUP SA 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 DELHAIZE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DELHAIZE GROUP SA has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and DELHAIZE go up and down completely randomly.
Pair Corralation between Guangdong Investment and DELHAIZE
Assuming the 90 days horizon Guangdong Investment Limited is expected to generate 3.14 times more return on investment than DELHAIZE. However, Guangdong Investment is 3.14 times more volatile than DELHAIZE GROUP SA. It trades about 0.02 of its potential returns per unit of risk. DELHAIZE GROUP SA is currently generating about 0.02 per unit of risk. If you would invest 67.00 in Guangdong Investment Limited on September 4, 2024 and sell it today you would lose (6.00) from holding Guangdong Investment Limited or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 29.96% |
| Values | Daily Returns |
Guangdong Investment Limited vs. DELHAIZE GROUP SA
Performance |
| Timeline |
| Guangdong Investment |
| DELHAIZE GROUP SA |
Guangdong Investment and DELHAIZE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and DELHAIZE
The main advantage of trading using opposite Guangdong Investment and DELHAIZE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, DELHAIZE 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 DELHAIZE will offset losses from the drop in DELHAIZE'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 |
| DELHAIZE vs. CapitaLand Investment Limited | DELHAIZE vs. Uber Technologies | DELHAIZE vs. Bank of America | DELHAIZE vs. Guangdong Investment Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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