Correlation Between Guangzhou Tinci and Super Dragon
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Super Dragon Engineering Plastics, you can compare the effects of market volatilities on Guangzhou Tinci and Super Dragon 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 Super Dragon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Super Dragon.
Diversification Opportunities for Guangzhou Tinci and Super Dragon
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Super is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Super Dragon Engineering Plast in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Dragon Enginee 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 Super Dragon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Dragon Enginee has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Super Dragon go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Super Dragon
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Super Dragon. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.15 times less risky than Super Dragon. The stock trades about -0.03 of its potential returns per unit of risk. The Super Dragon Engineering Plastics is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,278 in Super Dragon Engineering Plastics on September 3, 2024 and sell it today you would lose (383.00) from holding Super Dragon Engineering Plastics or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Super Dragon Engineering Plast
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Super Dragon Enginee |
Guangzhou Tinci and Super Dragon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Super Dragon
The main advantage of trading using opposite Guangzhou Tinci and Super Dragon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Super Dragon 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 Super Dragon will offset losses from the drop in Super Dragon's long position.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Rongsheng Petrochemical Co |
| Super Dragon vs. Cultural Investment Holdings | Super Dragon vs. Gome Telecom Equipment | Super Dragon vs. Bus Online Co | Super Dragon vs. Holitech Technology Co |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |