Correlation Between Guangzhou Tinci and Sichuan Newsnet
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Sichuan Newsnet Media, you can compare the effects of market volatilities on Guangzhou Tinci and Sichuan Newsnet 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 Sichuan Newsnet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Sichuan Newsnet.
Diversification Opportunities for Guangzhou Tinci and Sichuan Newsnet
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Sichuan is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Sichuan Newsnet Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Newsnet Media 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 Sichuan Newsnet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Newsnet Media has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Sichuan Newsnet go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Sichuan Newsnet
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Sichuan Newsnet. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.22 times less risky than Sichuan Newsnet. The stock trades about -0.05 of its potential returns per unit of risk. The Sichuan Newsnet Media is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,604 in Sichuan Newsnet Media on October 18, 2024 and sell it today you would lose (220.00) from holding Sichuan Newsnet Media or give up 13.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Sichuan Newsnet Media
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Sichuan Newsnet Media |
Guangzhou Tinci and Sichuan Newsnet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Sichuan Newsnet
The main advantage of trading using opposite Guangzhou Tinci and Sichuan Newsnet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Sichuan Newsnet 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 Sichuan Newsnet will offset losses from the drop in Sichuan Newsnet's 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 |
| Sichuan Newsnet vs. Konfoong Materials International | Sichuan Newsnet vs. Jinsanjiang Silicon Material | Sichuan Newsnet vs. Chongqing Sulian Plastic | Sichuan Newsnet vs. Guangzhou Tinci Materials |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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