Correlation Between Guangdong Investment and 577778BQ5
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By analyzing existing cross correlation between Guangdong Investment Limited and MAY DEPT STORES, you can compare the effects of market volatilities on Guangdong Investment and 577778BQ5 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 577778BQ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and 577778BQ5.
Diversification Opportunities for Guangdong Investment and 577778BQ5
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and 577778BQ5 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and MAY DEPT STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAY DEPT STORES 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 577778BQ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAY DEPT STORES has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and 577778BQ5 go up and down completely randomly.
Pair Corralation between Guangdong Investment and 577778BQ5
Assuming the 90 days horizon Guangdong Investment Limited is expected to generate 1.74 times more return on investment than 577778BQ5. However, Guangdong Investment is 1.74 times more volatile than MAY DEPT STORES. It trades about 0.03 of its potential returns per unit of risk. MAY DEPT STORES is currently generating about 0.03 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 | Very Weak |
| Accuracy | 30.86% |
| Values | Daily Returns |
Guangdong Investment Limited vs. MAY DEPT STORES
Performance |
| Timeline |
| Guangdong Investment |
| MAY DEPT STORES |
Guangdong Investment and 577778BQ5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and 577778BQ5
The main advantage of trading using opposite Guangdong Investment and 577778BQ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, 577778BQ5 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 577778BQ5 will offset losses from the drop in 577778BQ5'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 |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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