Correlation Between Guangzhou Tinci and Nanhua Bio
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Nanhua Bio Medicine, you can compare the effects of market volatilities on Guangzhou Tinci and Nanhua Bio 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 Nanhua Bio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Nanhua Bio.
Diversification Opportunities for Guangzhou Tinci and Nanhua Bio
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Nanhua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Nanhua Bio Medicine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanhua Bio Medicine 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 Nanhua Bio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanhua Bio Medicine has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Nanhua Bio go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Nanhua Bio
Assuming the 90 days trading horizon Guangzhou Tinci is expected to generate 1.56 times less return on investment than Nanhua Bio. But when comparing it to its historical volatility, Guangzhou Tinci Materials is 1.04 times less risky than Nanhua Bio. It trades about 0.07 of its potential returns per unit of risk. Nanhua Bio Medicine is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Nanhua Bio Medicine on September 1, 2024 and sell it today you would earn a total of 355.00 from holding Nanhua Bio Medicine or generate 52.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Nanhua Bio Medicine
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Nanhua Bio Medicine |
Guangzhou Tinci and Nanhua Bio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Nanhua Bio
The main advantage of trading using opposite Guangzhou Tinci and Nanhua Bio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Nanhua Bio 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 Nanhua Bio will offset losses from the drop in Nanhua Bio's long position.| Guangzhou Tinci vs. Guosheng Financial Holding | Guangzhou Tinci vs. China Everbright Bank | Guangzhou Tinci vs. Dhc Software Co | Guangzhou Tinci vs. Xiamen Bank Co |
| Nanhua Bio vs. Beijing Bewinner Communications | Nanhua Bio vs. Yangmei Chemical Co | Nanhua Bio vs. Liuzhou Chemical Industry | Nanhua Bio vs. Anhui Huaertai Chemical |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |