Correlation Between Guangzhou Tinci and Zoy Home
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Zoy Home Furnishing, you can compare the effects of market volatilities on Guangzhou Tinci and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Zoy Home.
Diversification Opportunities for Guangzhou Tinci and Zoy Home
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Zoy is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Zoy Home go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Zoy Home
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Zoy Home. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.11 times less risky than Zoy Home. The stock trades about -0.05 of its potential returns per unit of risk. The Zoy Home Furnishing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,358 in Zoy Home Furnishing on October 11, 2024 and sell it today you would lose (298.00) from holding Zoy Home Furnishing or give up 21.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Zoy Home Furnishing
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Zoy Home Furnishing |
Guangzhou Tinci and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Zoy Home
The main advantage of trading using opposite Guangzhou Tinci and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home'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 |
| Zoy Home vs. Guangzhou Tinci Materials | Zoy Home vs. Ningbo Tip Rubber | Zoy Home vs. King Strong New Material | Zoy Home vs. GreenTech Environmental Co |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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