Correlation Between Guangzhou Tinci and Ningbo Kangqiang
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Ningbo Kangqiang Electronics, you can compare the effects of market volatilities on Guangzhou Tinci and Ningbo Kangqiang 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 Ningbo Kangqiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Ningbo Kangqiang.
Diversification Opportunities for Guangzhou Tinci and Ningbo Kangqiang
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Ningbo is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Ningbo Kangqiang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Kangqiang Ele 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 Ningbo Kangqiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Kangqiang Ele has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Ningbo Kangqiang go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Ningbo Kangqiang
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.19 times more return on investment than Ningbo Kangqiang. However, Guangzhou Tinci is 1.19 times more volatile than Ningbo Kangqiang Electronics. It trades about 0.29 of its potential returns per unit of risk. Ningbo Kangqiang Electronics is currently generating about 0.1 per unit of risk. If you would invest 1,835 in Guangzhou Tinci Materials on September 4, 2024 and sell it today you would earn a total of 582.00 from holding Guangzhou Tinci Materials or generate 31.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Ningbo Kangqiang Electronics
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Ningbo Kangqiang Ele |
Guangzhou Tinci and Ningbo Kangqiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Ningbo Kangqiang
The main advantage of trading using opposite Guangzhou Tinci and Ningbo Kangqiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Ningbo Kangqiang 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 Ningbo Kangqiang will offset losses from the drop in Ningbo Kangqiang's long position.| Guangzhou Tinci vs. Chengdu Spaceon Electronics | Guangzhou Tinci vs. China Asset Management | Guangzhou Tinci vs. Anhui Liuguo Chemical | Guangzhou Tinci vs. CICC Fund Management |
| Ningbo Kangqiang vs. ButOne Information Corp | Ningbo Kangqiang vs. Shenzhen SDG Information | Ningbo Kangqiang vs. Linewell Software Co | Ningbo Kangqiang vs. YLZ Information Tech |
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 CEOs Directory module to screen CEOs from public companies around the world.
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