Correlation Between Guangzhou Tinci and Shanghai Material
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Shanghai Material Trading, you can compare the effects of market volatilities on Guangzhou Tinci and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Shanghai Material.
Diversification Opportunities for Guangzhou Tinci and Shanghai Material
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Shanghai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Shanghai Material go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Shanghai Material
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to generate 0.95 times more return on investment than Shanghai Material. However, Guangzhou Tinci Materials is 1.05 times less risky than Shanghai Material. It trades about 0.25 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about 0.18 per unit of risk. If you would invest 1,835 in Guangzhou Tinci Materials on September 5, 2024 and sell it today you would earn a total of 504.00 from holding Guangzhou Tinci Materials or generate 27.47% 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. Shanghai Material Trading
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Shanghai Material Trading |
Guangzhou Tinci and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Shanghai Material
The main advantage of trading using opposite Guangzhou Tinci and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Guangzhou Tinci vs. Southern PublishingMedia Co | Guangzhou Tinci vs. Air China Ltd | Guangzhou Tinci vs. Changjiang Publishing Media | Guangzhou Tinci vs. Ningbo MedicalSystem Biotechnology |
| Shanghai Material vs. Cangzhou Mingzhu Plastic | Shanghai Material vs. Sobute New Materials | Shanghai Material vs. Hangzhou Gaoxin Rubber | Shanghai Material 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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