Correlation Between Guangzhou Tinci and Xinjiang Tianrun
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Guangzhou Tinci and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Xinjiang Tianrun.
Diversification Opportunities for Guangzhou Tinci and Xinjiang Tianrun
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Xinjiang Tianrun
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 1.74 times more return on investment than Xinjiang Tianrun. However, Guangzhou Tinci is 1.74 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.22 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.2 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Xinjiang Tianrun Dairy |
Guangzhou Tinci and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Xinjiang Tianrun
The main advantage of trading using opposite Guangzhou Tinci and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun'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 |
| Xinjiang Tianrun vs. Jiangxi JDL Environmental | Xinjiang Tianrun vs. Jiugui Liquor Co | Xinjiang Tianrun vs. Guangzhou Tinci Materials | Xinjiang Tianrun vs. Tongxing Environmental Protection |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |