Correlation Between Guangzhou Tinci and Der International
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Der International Home, you can compare the effects of market volatilities on Guangzhou Tinci and Der International 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 Der International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Der International.
Diversification Opportunities for Guangzhou Tinci and Der International
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Der is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Der International Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Der International Home 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 Der International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Der International Home has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Der International go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Der International
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.11 times more return on investment than Der International. However, Guangzhou Tinci is 1.11 times more volatile than Der International Home. It trades about 0.03 of its potential returns per unit of risk. Der International Home is currently generating about 0.02 per unit of risk. If you would invest 2,268 in Guangzhou Tinci Materials on September 3, 2024 and sell it today you would earn a total of 201.00 from holding Guangzhou Tinci Materials or generate 8.86% 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. Der International Home
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Der International Home |
Guangzhou Tinci and Der International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Der International
The main advantage of trading using opposite Guangzhou Tinci and Der International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Der International 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 Der International will offset losses from the drop in Der International's long position.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Rongsheng Petrochemical Co | Guangzhou Tinci vs. Hoshine Silicon Ind |
| Der International vs. Marssenger Kitchenware Co | Der International vs. Shenzhen Noposion Agrochemicals | Der International vs. Chahua Modern Housewares | Der International vs. HUAQIN TECHNOLOGY LTD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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