Correlation Between Guangdong Investment and GWOCN

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Guangdong Investment and GWOCN 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 GWOCN 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 GWOCN 415 03 JUN 47, you can compare the effects of market volatilities on Guangdong Investment and GWOCN 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 GWOCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and GWOCN.

Diversification Opportunities for Guangdong Investment and GWOCN

0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Guangdong and GWOCN is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and GWOCN 415 03 JUN 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWOCN 415 03 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 GWOCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWOCN 415 03 has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and GWOCN go up and down completely randomly.

Pair Corralation between Guangdong Investment and GWOCN

Assuming the 90 days horizon Guangdong Investment Limited is expected to generate 3.32 times more return on investment than GWOCN. However, Guangdong Investment is 3.32 times more volatile than GWOCN 415 03 JUN 47. It trades about 0.02 of its potential returns per unit of risk. GWOCN 415 03 JUN 47 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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy23.08%
ValuesDaily Returns

Guangdong Investment Limited  vs.  GWOCN 415 03 JUN 47

 Performance 
       Timeline  
Guangdong Investment 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Guangdong Investment Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Guangdong Investment reported solid returns over the last few months and may actually be approaching a breakup point.
GWOCN 415 03 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days GWOCN 415 03 JUN 47 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for GWOCN 415 03 JUN 47 investors.

Guangdong Investment and GWOCN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Guangdong Investment and GWOCN

The main advantage of trading using opposite Guangdong Investment and GWOCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, GWOCN 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 GWOCN will offset losses from the drop in GWOCN'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
The idea behind Guangdong Investment Limited and GWOCN 415 03 JUN 47 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
GWOCN vs. Duluth Holdings
GWOCN vs. SunOpta
GWOCN vs. CVW CleanTech
GWOCN vs. Victorias Secret Co
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Bonds Directory
Find actively traded corporate debentures issued by US companies
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY