Correlation Between North Huajin and Guangzhou Jointas
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By analyzing existing cross correlation between North Huajin Chemical and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on North Huajin and Guangzhou Jointas 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 North Huajin with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Guangzhou Jointas.
Diversification Opportunities for North Huajin and Guangzhou Jointas
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and Guangzhou is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and North Huajin 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 North Huajin Chemical are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of North Huajin i.e., North Huajin and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between North Huajin and Guangzhou Jointas
Assuming the 90 days trading horizon North Huajin is expected to generate 1.18 times less return on investment than Guangzhou Jointas. In addition to that, North Huajin is 1.22 times more volatile than Guangzhou Jointas Chemical. It trades about 0.18 of its total potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about 0.25 per unit of volatility. If you would invest 376.00 in Guangzhou Jointas Chemical on August 28, 2024 and sell it today you would earn a total of 192.00 from holding Guangzhou Jointas Chemical or generate 51.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| North Huajin Chemical |
| Guangzhou Jointas |
North Huajin and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Guangzhou Jointas
The main advantage of trading using opposite North Huajin and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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