Correlation Between Guangzhou Zhujiang and Shanghai Yaoji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Guangzhou Zhujiang and Shanghai Yaoji 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 Guangzhou Zhujiang with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Shanghai Yaoji.
Diversification Opportunities for Guangzhou Zhujiang and Shanghai Yaoji
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Shanghai is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Shanghai Yaoji
Assuming the 90 days trading horizon Guangzhou Zhujiang is expected to generate 2.89 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Guangzhou Zhujiang Brewery is 2.07 times less risky than Shanghai Yaoji. It trades about 0.1 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,016 in Shanghai Yaoji Playing on September 24, 2024 and sell it today you would earn a total of 834.00 from holding Shanghai Yaoji Playing or generate 41.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Shanghai Yaoji Playing
Performance |
Timeline |
Guangzhou Zhujiang |
Shanghai Yaoji Playing |
Guangzhou Zhujiang and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Zhujiang and Shanghai Yaoji
The main advantage of trading using opposite Guangzhou Zhujiang and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.Guangzhou Zhujiang vs. BYD Co Ltd | Guangzhou Zhujiang vs. China Mobile Limited | Guangzhou Zhujiang vs. Agricultural Bank of | Guangzhou Zhujiang vs. Industrial and Commercial |
Shanghai Yaoji vs. PetroChina Co Ltd | Shanghai Yaoji vs. China Mobile Limited | Shanghai Yaoji vs. CNOOC Limited | Shanghai Yaoji vs. Ping An Insurance |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |