Correlation Between Guangzhou Tinci and China Vanke
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By analyzing existing cross correlation between Guangzhou Tinci Materials and China Vanke Co, you can compare the effects of market volatilities on Guangzhou Tinci and China Vanke 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 Guangzhou Tinci with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and China Vanke.
Diversification Opportunities for Guangzhou Tinci and China Vanke
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and China is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Guangzhou Tinci 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 Guangzhou Tinci Materials are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and China Vanke go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and China Vanke
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.28 times more return on investment than China Vanke. However, Guangzhou Tinci is 1.28 times more volatile than China Vanke Co. It trades about -0.03 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.06 per unit of risk. If you would invest 4,370 in Guangzhou Tinci Materials on August 28, 2024 and sell it today you would lose (1,873) from holding Guangzhou Tinci Materials or give up 42.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. China Vanke Co
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| China Vanke |
Guangzhou Tinci and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and China Vanke
The main advantage of trading using opposite Guangzhou Tinci and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, China Vanke 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 China Vanke will offset losses from the drop in China Vanke's long position.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
| China Vanke vs. Industrial and Commercial | China Vanke vs. China Construction Bank | China Vanke vs. Bank of China | China Vanke vs. Agricultural Bank of |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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