Correlation Between Guangzhou Tinci and Wuhan Yangtze
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Guangzhou Tinci and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Wuhan Yangtze.
Diversification Opportunities for Guangzhou Tinci and Wuhan Yangtze
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Wuhan is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Wuhan Yangtze
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.29 times less risky than Wuhan Yangtze. The stock trades about -0.27 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 2,350 in Wuhan Yangtze Communication on October 23, 2024 and sell it today you would lose (120.00) from holding Wuhan Yangtze Communication or give up 5.11% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Wuhan Yangtze Commun |
Guangzhou Tinci and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Wuhan Yangtze
The main advantage of trading using opposite Guangzhou Tinci and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.| Guangzhou Tinci vs. Changchun BCHT Biotechnology | Guangzhou Tinci vs. Leyard Optoelectronic | Guangzhou Tinci vs. Jiangsu GDK Biotechnology | Guangzhou Tinci vs. Aurora Optoelectronics Co |
| Wuhan Yangtze vs. Shanghai CEO Environmental | Wuhan Yangtze vs. Shanghai Yaoji Playing | Wuhan Yangtze vs. Cicc Fund Management | Wuhan Yangtze 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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