Correlation Between Guangdong Investment and SIEM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both Guangdong Investment and SIEM OFFSHORE 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 SIEM OFFSHORE 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 SIEM OFFSHORE NEW, you can compare the effects of market volatilities on Guangdong Investment and SIEM OFFSHORE 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 SIEM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Investment and SIEM OFFSHORE.
Diversification Opportunities for Guangdong Investment and SIEM OFFSHORE
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Guangdong and SIEM is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Investment Limited and SIEM OFFSHORE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIEM OFFSHORE NEW 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 SIEM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIEM OFFSHORE NEW has no effect on the direction of Guangdong Investment i.e., Guangdong Investment and SIEM OFFSHORE go up and down completely randomly.
Pair Corralation between Guangdong Investment and SIEM OFFSHORE
Assuming the 90 days horizon Guangdong Investment Limited is expected to generate 2.12 times more return on investment than SIEM OFFSHORE. However, Guangdong Investment is 2.12 times more volatile than SIEM OFFSHORE NEW. It trades about 0.07 of its potential returns per unit of risk. SIEM OFFSHORE NEW is currently generating about 0.05 per unit of risk. If you would invest 16.00 in Guangdong Investment Limited on October 12, 2024 and sell it today you would earn a total of 56.00 from holding Guangdong Investment Limited or generate 350.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Investment Limited vs. SIEM OFFSHORE NEW
Performance |
| Timeline |
| Guangdong Investment |
| SIEM OFFSHORE NEW |
Guangdong Investment and SIEM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Investment and SIEM OFFSHORE
The main advantage of trading using opposite Guangdong Investment and SIEM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Investment position performs unexpectedly, SIEM OFFSHORE 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 SIEM OFFSHORE will offset losses from the drop in SIEM OFFSHORE's long position.| Guangdong Investment vs. American Water Works | Guangdong Investment vs. Aqua America | Guangdong Investment vs. United Utilities Group | Guangdong Investment vs. Companhia de Saneamento |
| SIEM OFFSHORE vs. Guangdong Investment Limited | SIEM OFFSHORE vs. CENTURIA OFFICE REIT | SIEM OFFSHORE vs. Corporate Office Properties | SIEM OFFSHORE vs. New Residential Investment |
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 CEOs Directory module to screen CEOs from public companies around the world.
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