Correlation Between Guizhou Chanhen and Guangzhou Jointas
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Guizhou Chanhen and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Guangzhou Jointas.
Diversification Opportunities for Guizhou Chanhen and Guangzhou Jointas
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guizhou and Guangzhou is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Guangzhou Jointas
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.77 times more return on investment than Guangzhou Jointas. However, Guizhou Chanhen Chemical is 1.3 times less risky than Guangzhou Jointas. It trades about -0.05 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.32 per unit of risk. If you would invest 2,221 in Guizhou Chanhen Chemical on October 12, 2024 and sell it today you would lose (61.00) from holding Guizhou Chanhen Chemical or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Guangzhou Jointas |
Guizhou Chanhen and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Guangzhou Jointas
The main advantage of trading using opposite Guizhou Chanhen and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Guangzhou Jointas 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 Jointas will offset losses from the drop in Guangzhou Jointas' long position.| Guizhou Chanhen vs. Fibocom Wireless | Guizhou Chanhen vs. Haima Automobile Group | Guizhou Chanhen vs. Huaxia Fund Management | Guizhou Chanhen vs. Allwin Telecommunication Co |
| Guangzhou Jointas vs. Qumei Furniture Group | Guangzhou Jointas vs. Songz Automobile Air | Guangzhou Jointas vs. Zoy Home Furnishing | Guangzhou Jointas vs. Ningbo Fangzheng Automobile |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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