Correlation Between Guangzhou Jointas and Advanced Technology
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Advanced Technology Materials, you can compare the effects of market volatilities on Guangzhou Jointas and Advanced Technology 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 Guangzhou Jointas with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Advanced Technology.
Diversification Opportunities for Guangzhou Jointas and Advanced Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Advanced is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and Guangzhou Jointas 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 Guangzhou Jointas Chemical are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Advanced Technology go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Advanced Technology
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Advanced Technology. In addition to that, Guangzhou Jointas is 1.07 times more volatile than Advanced Technology Materials. It trades about -0.05 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.03 per unit of volatility. If you would invest 843.00 in Advanced Technology Materials on October 14, 2024 and sell it today you would earn a total of 247.00 from holding Advanced Technology Materials or generate 29.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Advanced Technology Materials
Performance |
| Timeline |
| Guangzhou Jointas |
| Advanced Technology |
Guangzhou Jointas and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Advanced Technology
The main advantage of trading using opposite Guangzhou Jointas and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Guangzhou Jointas vs. HanS Laser Tech | Guangzhou Jointas vs. Huaxia Fund Management | Guangzhou Jointas vs. Linewell Software Co | Guangzhou Jointas vs. Digiwin Software Co |
| Advanced Technology vs. Dosilicon Co | Advanced Technology vs. Guangzhou Jointas Chemical | Advanced Technology vs. Hunan Tyen Machinery | Advanced Technology vs. Liuzhou Chemical Industry |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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