Correlation Between Guangdong Qunxing and Aba Chemicals
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By analyzing existing cross correlation between Guangdong Qunxing Toys and Aba Chemicals Corp, you can compare the effects of market volatilities on Guangdong Qunxing and Aba Chemicals 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 Guangdong Qunxing with a short position of Aba Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Aba Chemicals.
Diversification Opportunities for Guangdong Qunxing and Aba Chemicals
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Aba is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys and Aba Chemicals Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aba Chemicals Corp and Guangdong Qunxing 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 Guangdong Qunxing Toys are associated (or correlated) with Aba Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aba Chemicals Corp has no effect on the direction of Guangdong Qunxing i.e., Guangdong Qunxing and Aba Chemicals go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Aba Chemicals
Assuming the 90 days trading horizon Guangdong Qunxing Toys is expected to generate 0.81 times more return on investment than Aba Chemicals. However, Guangdong Qunxing Toys is 1.24 times less risky than Aba Chemicals. It trades about 0.11 of its potential returns per unit of risk. Aba Chemicals Corp is currently generating about 0.06 per unit of risk. If you would invest 413.00 in Guangdong Qunxing Toys on October 26, 2024 and sell it today you would earn a total of 216.00 from holding Guangdong Qunxing Toys or generate 52.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Aba Chemicals Corp
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Aba Chemicals Corp |
Guangdong Qunxing and Aba Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Aba Chemicals
The main advantage of trading using opposite Guangdong Qunxing and Aba Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing position performs unexpectedly, Aba Chemicals 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 Aba Chemicals will offset losses from the drop in Aba Chemicals' long position.| Guangdong Qunxing vs. Eastern Communications Co | Guangdong Qunxing vs. Nanjing Putian Telecommunications | Guangdong Qunxing vs. Dr Peng Telecom | Guangdong Qunxing vs. Wuhan Yangtze Communication |
| Aba Chemicals vs. Qilu Bank Co | Aba Chemicals vs. Xinjiang Baodi Mining | Aba Chemicals vs. Guangdong Qunxing Toys | Aba Chemicals vs. HeNan Splendor Science |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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