Correlation Between Guizhou Chanhen and Xiangtan Electrochemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou Chanhen Chemical and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Guizhou Chanhen and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Xiangtan Electrochemical.
Diversification Opportunities for Guizhou Chanhen and Xiangtan Electrochemical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guizhou and Xiangtan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Xiangtan Electrochemical
Assuming the 90 days trading horizon Guizhou Chanhen is expected to generate 1.33 times less return on investment than Xiangtan Electrochemical. But when comparing it to its historical volatility, Guizhou Chanhen Chemical is 1.19 times less risky than Xiangtan Electrochemical. It trades about 0.14 of its potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,043 in Xiangtan Electrochemical Scientific on September 1, 2024 and sell it today you would earn a total of 116.00 from holding Xiangtan Electrochemical Scientific or generate 11.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Xiangtan Electrochemical |
Guizhou Chanhen and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Xiangtan Electrochemical
The main advantage of trading using opposite Guizhou Chanhen and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Guizhou Chanhen vs. GKHT Medical Technology | Guizhou Chanhen vs. Shanghai Jinfeng Wine | Guizhou Chanhen vs. Guangdong Qunxing Toys | Guizhou Chanhen vs. Ningbo David Medical |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |