Correlation Between Guizhou Chanhen and Allied Machinery
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou Chanhen Chemical and Allied Machinery Co, you can compare the effects of market volatilities on Guizhou Chanhen and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Allied Machinery.
Diversification Opportunities for Guizhou Chanhen and Allied Machinery
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guizhou and Allied is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Allied Machinery go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Allied Machinery
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.79 times more return on investment than Allied Machinery. However, Guizhou Chanhen Chemical is 1.26 times less risky than Allied Machinery. It trades about 0.32 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.17 per unit of risk. If you would invest 2,178 in Guizhou Chanhen Chemical on September 27, 2024 and sell it today you would earn a total of 292.00 from holding Guizhou Chanhen Chemical or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Allied Machinery Co
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Allied Machinery |
Guizhou Chanhen and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Allied Machinery
The main advantage of trading using opposite Guizhou Chanhen and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery'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 |
| Allied Machinery vs. HeBei Jinniu Chemical | Allied Machinery vs. Markor International Home | Allied Machinery vs. Guizhou Chanhen Chemical | Allied Machinery vs. Xilong Chemical Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |