Correlation Between Guizhou Chanhen and Tianjin Hi
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Guizhou Chanhen and Tianjin 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Tianjin Hi.
Diversification Opportunities for Guizhou Chanhen and Tianjin Hi
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guizhou and Tianjin is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Tianjin Hi go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Tianjin Hi
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.66 times more return on investment than Tianjin Hi. However, Guizhou Chanhen Chemical is 1.51 times less risky than Tianjin Hi. It trades about -0.02 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.01 per unit of risk. If you would invest 2,257 in Guizhou Chanhen Chemical on October 26, 2024 and sell it today you would lose (97.00) from holding Guizhou Chanhen Chemical or give up 4.3% 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. Tianjin Hi Tech Development
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Tianjin Hi Tech |
Guizhou Chanhen and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Tianjin Hi
The main advantage of trading using opposite Guizhou Chanhen and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Tianjin 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 Tianjin Hi will offset losses from the drop in Tianjin 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 |
| Tianjin Hi vs. Beijing Mainstreets Investment | Tianjin Hi vs. Shandong Polymer Biochemicals | Tianjin Hi vs. Zhongrun Resources Investment | Tianjin Hi vs. Shenzhen Noposion Agrochemicals |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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