Correlation Between Guangdong Silvere and XCMG Construction
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By analyzing existing cross correlation between Guangdong Silvere Sci and XCMG Construction Machinery, you can compare the effects of market volatilities on Guangdong Silvere and XCMG Construction 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 Silvere with a short position of XCMG Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and XCMG Construction.
Diversification Opportunities for Guangdong Silvere and XCMG Construction
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and XCMG is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and XCMG Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCMG Construction and Guangdong Silvere 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 Silvere Sci are associated (or correlated) with XCMG Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCMG Construction has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and XCMG Construction go up and down completely randomly.
Pair Corralation between Guangdong Silvere and XCMG Construction
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.76 times more return on investment than XCMG Construction. However, Guangdong Silvere is 1.76 times more volatile than XCMG Construction Machinery. It trades about 0.09 of its potential returns per unit of risk. XCMG Construction Machinery is currently generating about 0.09 per unit of risk. If you would invest 538.00 in Guangdong Silvere Sci on September 23, 2024 and sell it today you would earn a total of 108.00 from holding Guangdong Silvere Sci or generate 20.07% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Silvere Sci vs. XCMG Construction Machinery
Performance |
Timeline |
Guangdong Silvere Sci |
XCMG Construction |
Guangdong Silvere and XCMG Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Silvere and XCMG Construction
The main advantage of trading using opposite Guangdong Silvere and XCMG Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, XCMG Construction 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 XCMG Construction will offset losses from the drop in XCMG Construction's long position.Guangdong Silvere vs. Nuode Investment Co | Guangdong Silvere vs. Hunan TV Broadcast | Guangdong Silvere vs. Zhongrun Resources Investment | Guangdong Silvere vs. Tieling Newcity Investment |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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