Correlation Between Guangzhou Tinci and Xiangpiaopiao Food
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Xiangpiaopiao Food Co, you can compare the effects of market volatilities on Guangzhou Tinci and Xiangpiaopiao Food 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 Xiangpiaopiao Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Xiangpiaopiao Food.
Diversification Opportunities for Guangzhou Tinci and Xiangpiaopiao Food
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Xiangpiaopiao is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Xiangpiaopiao Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangpiaopiao Food 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 Xiangpiaopiao Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangpiaopiao Food has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Xiangpiaopiao Food go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Xiangpiaopiao Food
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Xiangpiaopiao Food. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 1.07 times less risky than Xiangpiaopiao Food. The stock trades about -0.05 of its potential returns per unit of risk. The Xiangpiaopiao Food Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,512 in Xiangpiaopiao Food Co on October 11, 2024 and sell it today you would earn a total of 54.00 from holding Xiangpiaopiao Food Co or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Xiangpiaopiao Food Co
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Xiangpiaopiao Food |
Guangzhou Tinci and Xiangpiaopiao Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Xiangpiaopiao Food
The main advantage of trading using opposite Guangzhou Tinci and Xiangpiaopiao Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Xiangpiaopiao Food 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 Xiangpiaopiao Food will offset losses from the drop in Xiangpiaopiao Food'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 |
| Xiangpiaopiao Food vs. King Strong New Material | Xiangpiaopiao Food vs. Guangzhou Tinci Materials | Xiangpiaopiao Food vs. Fuda Alloy Materials | Xiangpiaopiao Food vs. Sharetronic Data Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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