Correlation Between Guangzhou Tinci and Western Metal
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Western Metal Materials, you can compare the effects of market volatilities on Guangzhou Tinci and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Western Metal.
Diversification Opportunities for Guangzhou Tinci and Western Metal
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Western is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Western Metal go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Western Metal
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Western Metal. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.55 times less risky than Western Metal. The stock trades about -0.58 of its potential returns per unit of risk. The Western Metal Materials is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,643 in Western Metal Materials on September 28, 2024 and sell it today you would earn a total of 157.00 from holding Western Metal Materials or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Western Metal Materials
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Western Metal Materials |
Guangzhou Tinci and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Western Metal
The main advantage of trading using opposite Guangzhou Tinci and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal'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 |
| Western Metal vs. Guangzhou Tinci Materials | Western Metal vs. King Strong New Material | Western Metal vs. Circuit Fabology Microelectronics | Western Metal vs. Hangzhou Gaoxin Rubber |
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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