Correlation Between China Baoan and Guangdong Tianhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Baoan Group and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on China Baoan and Guangdong Tianhe 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 China Baoan with a short position of Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Baoan and Guangdong Tianhe.
Diversification Opportunities for China Baoan and Guangdong Tianhe
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Guangdong is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding China Baoan Group and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr and China Baoan 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 China Baoan Group are associated (or correlated) with Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of China Baoan i.e., China Baoan and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between China Baoan and Guangdong Tianhe
Assuming the 90 days trading horizon China Baoan Group is expected to generate 0.8 times more return on investment than Guangdong Tianhe. However, China Baoan Group is 1.25 times less risky than Guangdong Tianhe. It trades about -0.03 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.03 per unit of risk. If you would invest 1,225 in China Baoan Group on October 15, 2024 and sell it today you would lose (385.00) from holding China Baoan Group or give up 31.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Baoan Group vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| China Baoan Group |
| Guangdong Tianhe Agr |
China Baoan and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Baoan and Guangdong Tianhe
The main advantage of trading using opposite China Baoan and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Baoan position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| China Baoan vs. Nanxing Furniture Machinery | China Baoan vs. Healthcare Co | China Baoan vs. Shandong Homey Aquatic | China Baoan vs. Vohringer Home Technology |
| Guangdong Tianhe vs. Penyao Environmental Protection | Guangdong Tianhe vs. GreenTech Environmental Co | Guangdong Tianhe vs. Zoy Home Furnishing | Guangdong Tianhe vs. Fujian Nanwang Environment |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |