Correlation Between OFFICE DEPOT and Guangdong Investment
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT and Guangdong Investment 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 OFFICE DEPOT and Guangdong Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and Guangdong Investment Limited, you can compare the effects of market volatilities on OFFICE DEPOT and Guangdong Investment 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 OFFICE DEPOT with a short position of Guangdong Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and Guangdong Investment.
Diversification Opportunities for OFFICE DEPOT and Guangdong Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and Guangdong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and Guangdong Investment Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Investment and OFFICE DEPOT 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 OFFICE DEPOT are associated (or correlated) with Guangdong Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Investment has no effect on the direction of OFFICE DEPOT i.e., OFFICE DEPOT and Guangdong Investment go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and Guangdong Investment
If you would invest 57.00 in Guangdong Investment Limited on October 30, 2024 and sell it today you would earn a total of 15.00 from holding Guangdong Investment Limited or generate 26.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. Guangdong Investment Limited
Performance |
| Timeline |
| OFFICE DEPOT |
| Guangdong Investment |
OFFICE DEPOT and Guangdong Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and Guangdong Investment
The main advantage of trading using opposite OFFICE DEPOT and Guangdong Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT position performs unexpectedly, Guangdong Investment 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 Guangdong Investment will offset losses from the drop in Guangdong Investment's long position.| OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc | OFFICE DEPOT vs. Apple Inc |
| Guangdong Investment vs. PARKEN Sport Entertainment | Guangdong Investment vs. Aluminum of | Guangdong Investment vs. FIREWEED METALS P | Guangdong Investment vs. ARDAGH METAL PACDL 0001 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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