Correlation Between Guangzhou Tinci and Anhui Jianghuai
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Guangzhou Tinci and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Anhui Jianghuai.
Diversification Opportunities for Guangzhou Tinci and Anhui Jianghuai
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Anhui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Anhui Jianghuai
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.12 times less risky than Anhui Jianghuai. The stock trades about -0.47 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 3,964 in Anhui Jianghuai Automobile on October 12, 2024 and sell it today you would lose (382.00) from holding Anhui Jianghuai Automobile or give up 9.64% 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. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Anhui Jianghuai Auto |
Guangzhou Tinci and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Anhui Jianghuai
The main advantage of trading using opposite Guangzhou Tinci and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Guangzhou Tinci vs. Jinlong Machinery Electronic | Guangzhou Tinci vs. Qijing Machinery | Guangzhou Tinci vs. Gifore Agricultural Machinery | Guangzhou Tinci vs. Lutian Machinery Co |
| Anhui Jianghuai vs. Changchun Engley Automobile | Anhui Jianghuai vs. King Strong New Material | Anhui Jianghuai vs. Western Metal Materials | Anhui Jianghuai 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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