Correlation Between Tongling Nonferrous and Guangdong Brandmax
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongling Nonferrous Metals and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Tongling Nonferrous and Guangdong Brandmax 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 Tongling Nonferrous with a short position of Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Guangdong Brandmax.
Diversification Opportunities for Tongling Nonferrous and Guangdong Brandmax
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongling and Guangdong is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax and Tongling Nonferrous 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 Tongling Nonferrous Metals are associated (or correlated) with Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Tongling Nonferrous i.e., Tongling Nonferrous and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Guangdong Brandmax
Assuming the 90 days trading horizon Tongling Nonferrous is expected to generate 14.53 times less return on investment than Guangdong Brandmax. But when comparing it to its historical volatility, Tongling Nonferrous Metals is 1.9 times less risky than Guangdong Brandmax. It trades about 0.01 of its potential returns per unit of risk. Guangdong Brandmax Marketing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 639.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 372.00 from holding Guangdong Brandmax Marketing or generate 58.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Tongling Nonferrous |
| Guangdong Brandmax |
Tongling Nonferrous and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Guangdong Brandmax
The main advantage of trading using opposite Tongling Nonferrous and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous position performs unexpectedly, Guangdong Brandmax 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 Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Tongling Nonferrous vs. Zhejiang Kingland Pipeline | Tongling Nonferrous vs. Ningbo Construction Co | Tongling Nonferrous vs. GKHT Medical Technology | Tongling Nonferrous vs. Double Medical Technology |
| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |