Correlation Between Guangzhou Ruoyuchen and Shanghai Jinfeng
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Guangzhou Ruoyuchen and Shanghai Jinfeng 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 Ruoyuchen with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Shanghai Jinfeng.
Diversification Opportunities for Guangzhou Ruoyuchen and Shanghai Jinfeng
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Guangzhou Ruoyuchen 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 Ruoyuchen Information are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Guangzhou Ruoyuchen i.e., Guangzhou Ruoyuchen and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Shanghai Jinfeng
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.25 times more return on investment than Shanghai Jinfeng. However, Guangzhou Ruoyuchen is 1.25 times more volatile than Shanghai Jinfeng Wine. It trades about 0.34 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.09 per unit of risk. If you would invest 1,250 in Guangzhou Ruoyuchen Information on September 26, 2024 and sell it today you would earn a total of 1,710 from holding Guangzhou Ruoyuchen Information or generate 136.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Shanghai Jinfeng Wine
Performance |
Timeline |
Guangzhou Ruoyuchen |
Shanghai Jinfeng Wine |
Guangzhou Ruoyuchen and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Ruoyuchen and Shanghai Jinfeng
The main advantage of trading using opposite Guangzhou Ruoyuchen and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.Guangzhou Ruoyuchen vs. Xinke Material | Guangzhou Ruoyuchen vs. Guangzhou Tinci Materials | Guangzhou Ruoyuchen vs. Guangxi Wuzhou Communications | Guangzhou Ruoyuchen vs. Railway Signal Communication |
Shanghai Jinfeng vs. ZJBC Information Technology | Shanghai Jinfeng vs. Harbin Air Conditioning | Shanghai Jinfeng vs. Longmaster Information Tech | Shanghai Jinfeng vs. Guangzhou Ruoyuchen Information |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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