Correlation Between Guangzhou Tinci and Super-Dragon Engineering
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 Engineering 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 Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Super-Dragon Engineering.
Diversification Opportunities for Guangzhou Tinci and Super-Dragon Engineering
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Super-Dragon 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 Engineering 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 Engineering. 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 Engineering has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Super-Dragon Engineering go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Super-Dragon Engineering
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.32 times more return on investment than Super-Dragon Engineering. However, Guangzhou Tinci is 1.32 times more volatile than Super Dragon Engineering Plastics. It trades about 0.22 of its potential returns per unit of risk. Super Dragon Engineering Plastics is currently generating about 0.14 per unit of risk. If you would invest 1,395 in Guangzhou Tinci Materials on September 2, 2024 and sell it today you would earn a total of 1,074 from holding Guangzhou Tinci Materials or generate 76.99% 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. Super Dragon Engineering Plast
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Super-Dragon Engineering |
Guangzhou Tinci and Super-Dragon Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Super-Dragon Engineering
The main advantage of trading using opposite Guangzhou Tinci and Super-Dragon Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Super-Dragon Engineering 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 Engineering will offset losses from the drop in Super-Dragon Engineering's long position.| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |