Correlation Between Guangzhou Tinci and Guangzhou Risong
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Guangzhou Risong Intelligent, you can compare the effects of market volatilities on Guangzhou Tinci and Guangzhou Risong 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 Guangzhou Risong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Guangzhou Risong.
Diversification Opportunities for Guangzhou Tinci and Guangzhou Risong
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Guangzhou Risong Intelligent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Risong Int 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 Guangzhou Risong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Risong Int has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Guangzhou Risong go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Guangzhou Risong
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Guangzhou Risong. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Tinci Materials is 2.06 times less risky than Guangzhou Risong. The stock trades about -0.08 of its potential returns per unit of risk. The Guangzhou Risong Intelligent is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,512 in Guangzhou Risong Intelligent on November 2, 2024 and sell it today you would earn a total of 226.00 from holding Guangzhou Risong Intelligent or generate 6.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Guangzhou Risong Intelligent
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Guangzhou Risong Int |
Guangzhou Tinci and Guangzhou Risong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Guangzhou Risong
The main advantage of trading using opposite Guangzhou Tinci and Guangzhou Risong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Guangzhou Risong 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 Guangzhou Risong will offset losses from the drop in Guangzhou Risong'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 |
| Guangzhou Risong vs. Guangzhou Dongfang Hotel | Guangzhou Risong vs. Touchstone International Medical | Guangzhou Risong vs. Huatian Hotel Group | Guangzhou Risong vs. Kontour Medical 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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