Correlation Between Guizhou Chanhen and FSPG Hi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou Chanhen Chemical and FSPG Hi Tech Co, you can compare the effects of market volatilities on Guizhou Chanhen and FSPG Hi 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 FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and FSPG Hi.
Diversification Opportunities for Guizhou Chanhen and FSPG Hi
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guizhou and FSPG is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech 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 FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and FSPG Hi go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and FSPG Hi
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to under-perform the FSPG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Guizhou Chanhen Chemical is 1.99 times less risky than FSPG Hi. The stock trades about -0.02 of its potential returns per unit of risk. The FSPG Hi Tech Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 524.00 in FSPG Hi Tech Co on October 26, 2024 and sell it today you would earn a total of 50.00 from holding FSPG Hi Tech Co or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| FSPG Hi Tech |
Guizhou Chanhen and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and FSPG Hi
The main advantage of trading using opposite Guizhou Chanhen and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.| Guizhou Chanhen vs. Zijin Mining Group | Guizhou Chanhen vs. Wanhua Chemical Group | Guizhou Chanhen vs. Baoshan Iron Steel | Guizhou Chanhen vs. Shandong Gold Mining |
| FSPG Hi vs. Ye Chiu Metal | FSPG Hi vs. Zhongrun Resources Investment | FSPG Hi vs. Jiaozuo Wanfang Aluminum | FSPG Hi vs. Zoje Resources 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |