Correlation Between Guangzhou Tinci and Konfoong Materials
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Konfoong Materials International, you can compare the effects of market volatilities on Guangzhou Tinci and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Konfoong Materials.
Diversification Opportunities for Guangzhou Tinci and Konfoong Materials
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Konfoong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Konfoong Materials go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Konfoong Materials
Assuming the 90 days trading horizon Guangzhou Tinci is expected to generate 1.54 times less return on investment than Konfoong Materials. But when comparing it to its historical volatility, Guangzhou Tinci Materials is 1.08 times less risky than Konfoong Materials. It trades about 0.05 of its potential returns per unit of risk. Konfoong Materials International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,482 in Konfoong Materials International on October 18, 2024 and sell it today you would earn a total of 1,431 from holding Konfoong Materials International or generate 26.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Konfoong Materials Internation
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Konfoong Materials |
Guangzhou Tinci and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Konfoong Materials
The main advantage of trading using opposite Guangzhou Tinci and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Guangzhou Tinci vs. Rising Nonferrous Metals | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Anhui Transport Consulting | Guangzhou Tinci vs. Xinjiang Beixin RoadBridge |
| Konfoong Materials vs. Double Medical Technology | Konfoong Materials vs. Allmed Medical Products | Konfoong Materials vs. Zhonghong Pulin Medical | Konfoong Materials vs. Shandong Publishing Media |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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