Correlation Between Guangzhou Tinci and Jilin OLED
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Tinci Materials and Jilin OLED Material, you can compare the effects of market volatilities on Guangzhou Tinci and Jilin OLED 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 Jilin OLED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Jilin OLED.
Diversification Opportunities for Guangzhou Tinci and Jilin OLED
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Jilin is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials and Jilin OLED Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin OLED Material 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 Jilin OLED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin OLED Material has no effect on the direction of Guangzhou Tinci i.e., Guangzhou Tinci and Jilin OLED go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Jilin OLED
Assuming the 90 days trading horizon Guangzhou Tinci is expected to generate 1.36 times less return on investment than Jilin OLED. But when comparing it to its historical volatility, Guangzhou Tinci Materials is 1.81 times less risky than Jilin OLED. It trades about 0.1 of its potential returns per unit of risk. Jilin OLED Material is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,119 in Jilin OLED Material on November 7, 2024 and sell it today you would earn a total of 66.00 from holding Jilin OLED Material or generate 3.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Jilin OLED Material
Performance |
| Timeline |
| Guangzhou Tinci Materials |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Jilin OLED Material |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guangzhou Tinci and Jilin OLED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Jilin OLED
The main advantage of trading using opposite Guangzhou Tinci and Jilin OLED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci position performs unexpectedly, Jilin OLED 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 Jilin OLED will offset losses from the drop in Jilin OLED's long position.The idea behind Guangzhou Tinci Materials and Jilin OLED Material pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |