Correlation Between Guangzhou Automobile and Storage Computer

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Can any of the company-specific risk be diversified away by investing in both Guangzhou Automobile and Storage Computer 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 Guangzhou Automobile and Storage Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guangzhou Automobile Group and Storage Computer, you can compare the effects of market volatilities on Guangzhou Automobile and Storage Computer 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 Automobile with a short position of Storage Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Storage Computer.

Diversification Opportunities for Guangzhou Automobile and Storage Computer

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Guangzhou and Storage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Storage Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Storage Computer and Guangzhou Automobile 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 Automobile Group are associated (or correlated) with Storage Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Storage Computer has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Storage Computer go up and down completely randomly.

Pair Corralation between Guangzhou Automobile and Storage Computer

If you would invest  43.00  in Guangzhou Automobile Group on September 12, 2025 and sell it today you would earn a total of  6.00  from holding Guangzhou Automobile Group or generate 13.95% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Guangzhou Automobile Group  vs.  Storage Computer

 Performance 
       Timeline  
Guangzhou Automobile 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Guangzhou Automobile Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Guangzhou Automobile reported solid returns over the last few months and may actually be approaching a breakup point.
Storage Computer 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Over the last 90 days Storage Computer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Storage Computer is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Guangzhou Automobile and Storage Computer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Guangzhou Automobile and Storage Computer

The main advantage of trading using opposite Guangzhou Automobile and Storage Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Storage Computer 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 Storage Computer will offset losses from the drop in Storage Computer's long position.
The idea behind Guangzhou Automobile Group and Storage Computer pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.

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