Correlation Between Guangzhou Tinci and Gemdale Corp
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Gemdale Corp, you can compare the effects of market volatilities on Guangzhou Tinci and Gemdale Corp 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 Gemdale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Gemdale Corp.
Diversification Opportunities for Guangzhou Tinci and Gemdale Corp
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Gemdale is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Gemdale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemdale Corp 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 Gemdale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemdale Corp has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Gemdale Corp go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Gemdale Corp
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.08 times more return on investment than Gemdale Corp. However, Guangzhou Tinci is 1.08 times more volatile than Gemdale Corp. It trades about -0.02 of its potential returns per unit of risk. Gemdale Corp is currently generating about -0.06 per unit of risk. If you would invest 2,037 in Guangzhou Tinci Materials on October 31, 2024 and sell it today you would lose (209.00) from holding Guangzhou Tinci Materials or give up 10.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Gemdale Corp
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Gemdale Corp |
Guangzhou Tinci and Gemdale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Gemdale Corp
The main advantage of trading using opposite Guangzhou Tinci and Gemdale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Gemdale Corp 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 Gemdale Corp will offset losses from the drop in Gemdale Corp's long position.| Guangzhou Tinci vs. Jinsanjiang Silicon Material | Guangzhou Tinci vs. Guocheng Mining Co | Guangzhou Tinci vs. Lier Chemical Co | Guangzhou Tinci vs. Jiangxi Naipu Mining |
| Gemdale Corp vs. Wuhan Yangtze Communication | Gemdale Corp vs. Tongyu Communication | Gemdale Corp vs. Guocheng Mining Co | Gemdale Corp vs. JCHX Mining Management |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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