Correlation Between Guangdong Investment and Nucletron Electronic
Can any of the company-specific risk be diversified away by investing in both Guangdong Investment and Nucletron Electronic 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 Nucletron Electronic 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 Nucletron Electronic Aktiengesellschaft, you can compare the effects of market volatilities on Guangdong Investment and Nucletron Electronic 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 Nucletron Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and Nucletron Electronic.
Diversification Opportunities for Guangdong Investment and Nucletron Electronic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangdong and Nucletron is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and Nucletron Electronic Aktienges in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nucletron Electronic 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 Nucletron Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nucletron Electronic has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and Nucletron Electronic go up and down completely randomly.
Pair Corralation between Guangdong Investment and Nucletron Electronic
If you would invest 75.00 in Guangdong Investment Limited on October 15, 2024 and sell it today you would earn a total of 2.00 from holding Guangdong Investment Limited or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 93.75% |
| Values | Daily Returns |
Guangdong Investment Limited vs. Nucletron Electronic Aktienges
Performance |
| Timeline |
| Guangdong Investment |
| Nucletron Electronic |
Guangdong Investment and Nucletron Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and Nucletron Electronic
The main advantage of trading using opposite Guangdong Investment and Nucletron Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, Nucletron Electronic 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 Nucletron Electronic will offset losses from the drop in Nucletron Electronic's long position.| Guangdong Investment vs. Boyd Gaming | Guangdong Investment vs. CONTAGIOUS GAMING INC | Guangdong Investment vs. Nomad Foods | Guangdong Investment vs. International Game Technology |
| Nucletron Electronic vs. GWILLI FOOD | Nucletron Electronic vs. SENECA FOODS A | Nucletron Electronic vs. Guangdong Investment Limited | Nucletron Electronic vs. INDOFOOD AGRI RES |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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