Correlation Between Rongsheng Petrochemical and Guangdong Tengen
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By analyzing existing cross correlation between Rongsheng Petrochemical Co and Guangdong Tengen Industrial, you can compare the effects of market volatilities on Rongsheng Petrochemical and Guangdong Tengen 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 Rongsheng Petrochemical with a short position of Guangdong Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongsheng Petrochemical and Guangdong Tengen.
Diversification Opportunities for Rongsheng Petrochemical and Guangdong Tengen
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rongsheng and Guangdong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rongsheng Petrochemical Co and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind and Rongsheng Petrochemical 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 Rongsheng Petrochemical Co are associated (or correlated) with Guangdong Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of Rongsheng Petrochemical i.e., Rongsheng Petrochemical and Guangdong Tengen go up and down completely randomly.
Pair Corralation between Rongsheng Petrochemical and Guangdong Tengen
If you would invest (100.00) in Guangdong Tengen Industrial on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Guangdong Tengen Industrial or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rongsheng Petrochemical Co vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| Rongsheng Petrochemical |
| Guangdong Tengen Ind |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Rongsheng Petrochemical and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongsheng Petrochemical and Guangdong Tengen
The main advantage of trading using opposite Rongsheng Petrochemical and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongsheng Petrochemical position performs unexpectedly, Guangdong Tengen 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 Tengen will offset losses from the drop in Guangdong Tengen's long position.| Rongsheng Petrochemical vs. Zijin Mining Group | Rongsheng Petrochemical vs. Wanhua Chemical Group | Rongsheng Petrochemical vs. Baoshan Iron Steel | Rongsheng Petrochemical vs. Hoshine Silicon Ind |
| Guangdong Tengen vs. Chongqing Shunbo Aluminum | Guangdong Tengen vs. Aluminum Corp of | Guangdong Tengen vs. Guangdong Jingyi Metal | Guangdong Tengen vs. Hefei Metalforming Mach |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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