Correlation Between Guangdong Qunxing and Shenzhen Sunlord
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Qunxing Toys and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on Guangdong Qunxing and Shenzhen Sunlord 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 Qunxing with a short position of Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Shenzhen Sunlord.
Diversification Opportunities for Guangdong Qunxing and Shenzhen Sunlord
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele and Guangdong Qunxing 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 Qunxing Toys are associated (or correlated) with Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Shenzhen Sunlord
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 1.63 times more return on investment than Shenzhen Sunlord. However, Guangdong Qunxing is 1.63 times more volatile than Shenzhen Sunlord Electronics. It trades about 0.21 of its potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.19 per unit of risk. If you would invest 460.00 in Guangdong Qunxing Toys on September 24, 2024 and sell it today you would earn a total of 294.00 from holding Guangdong Qunxing Toys or generate 63.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Qunxing Toys vs. Shenzhen Sunlord Electronics
Performance |
Timeline |
Guangdong Qunxing Toys |
Shenzhen Sunlord Ele |
Guangdong Qunxing and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Qunxing and Shenzhen Sunlord
The main advantage of trading using opposite Guangdong Qunxing and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.Guangdong Qunxing vs. PetroChina Co Ltd | Guangdong Qunxing vs. China Mobile Limited | Guangdong Qunxing vs. CNOOC Limited | Guangdong Qunxing vs. Ping An Insurance |
Shenzhen Sunlord vs. Industrial and Commercial | Shenzhen Sunlord vs. China Construction Bank | Shenzhen Sunlord vs. Agricultural Bank of | Shenzhen Sunlord vs. Bank of China |
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.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
CEOs Directory Screen CEOs from public companies around the world |