Correlation Between Guizhou Chanhen and Jilin Chemical
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Jilin Chemical Fibre, you can compare the effects of market volatilities on Guizhou Chanhen and Jilin Chemical 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 Guizhou Chanhen with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Jilin Chemical.
Diversification Opportunities for Guizhou Chanhen and Jilin Chemical
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guizhou and Jilin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Jilin Chemical go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Jilin Chemical
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.92 times more return on investment than Jilin Chemical. However, Guizhou Chanhen Chemical is 1.09 times less risky than Jilin Chemical. It trades about 0.0 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about -0.01 per unit of risk. If you would invest 2,637 in Guizhou Chanhen Chemical on October 20, 2024 and sell it today you would lose (417.00) from holding Guizhou Chanhen Chemical or give up 15.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Jilin Chemical Fibre |
Guizhou Chanhen and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Jilin Chemical
The main advantage of trading using opposite Guizhou Chanhen and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Jilin Chemical 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 Chemical will offset losses from the drop in Jilin Chemical's long position.| Guizhou Chanhen vs. Tieling Newcity Investment | Guizhou Chanhen vs. Chengtun Mining Group | Guizhou Chanhen vs. Beijing Mainstreets Investment | Guizhou Chanhen vs. Hainan Mining Co |
| Jilin Chemical vs. China Publishing Media | Jilin Chemical vs. Runjian Communication Co | Jilin Chemical vs. China Satellite Communications | Jilin Chemical vs. Time Publishing and |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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