Correlation Between Guangdong Investment and PIONEER
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By analyzing existing cross correlation between Guangdong Investment Limited and PIONEER NATURAL RESOURCES, you can compare the effects of market volatilities on Guangdong Investment and PIONEER 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 PIONEER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and PIONEER.
Diversification Opportunities for Guangdong Investment and PIONEER
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and PIONEER is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and PIONEER NATURAL RESOURCES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIONEER NATURAL RESOURCES 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 PIONEER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIONEER NATURAL RESOURCES has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and PIONEER go up and down completely randomly.
Pair Corralation between Guangdong Investment and PIONEER
Assuming the 90 days horizon Guangdong Investment Limited is expected to under-perform the PIONEER. In addition to that, Guangdong Investment is 2.58 times more volatile than PIONEER NATURAL RESOURCES. It trades about -0.12 of its total potential returns per unit of risk. PIONEER NATURAL RESOURCES is currently generating about -0.22 per unit of volatility. If you would invest 9,609 in PIONEER NATURAL RESOURCES on August 28, 2024 and sell it today you would lose (320.00) from holding PIONEER NATURAL RESOURCES or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Investment Limited vs. PIONEER NATURAL RESOURCES
Performance |
| Timeline |
| Guangdong Investment |
| PIONEER NATURAL RESOURCES |
Guangdong Investment and PIONEER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and PIONEER
The main advantage of trading using opposite Guangdong Investment and PIONEER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, PIONEER 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 PIONEER will offset losses from the drop in PIONEER'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 |
| PIONEER vs. Cracker Barrel Old | PIONEER vs. Dennys Corp | PIONEER vs. Guangdong Investment Limited | PIONEER vs. Sweetgreen |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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