Correlation Between Guangzhou Tinci and Jinsanjiang Silicon
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Guangzhou Tinci and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Jinsanjiang Silicon.
Diversification Opportunities for Guangzhou Tinci and Jinsanjiang Silicon
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Jinsanjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Jinsanjiang Silicon
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.18 times less risky than Jinsanjiang Silicon. The stock trades about -0.03 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Jinsanjiang Silicon Material on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Jinsanjiang Silicon Material or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Jinsanjiang Silicon |
Guangzhou Tinci and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Jinsanjiang Silicon
The main advantage of trading using opposite Guangzhou Tinci and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon'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 |
| Jinsanjiang Silicon vs. Dhc Software Co | Jinsanjiang Silicon vs. Niutech Environment Technology | Jinsanjiang Silicon vs. Gome Telecom Equipment | Jinsanjiang Silicon vs. Xinjiang Communications Construction |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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