Correlation Between Guangzhou Jointas and Hubei Dinglong
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Hubei Dinglong Chemical, you can compare the effects of market volatilities on Guangzhou Jointas and Hubei Dinglong 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 Hubei Dinglong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Hubei Dinglong.
Diversification Opportunities for Guangzhou Jointas and Hubei Dinglong
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Hubei is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Hubei Dinglong Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Dinglong Chemical 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 Hubei Dinglong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Dinglong Chemical has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Hubei Dinglong go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Hubei Dinglong
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 0.77 times more return on investment than Hubei Dinglong. However, Guangzhou Jointas Chemical is 1.3 times less risky than Hubei Dinglong. It trades about 0.25 of its potential returns per unit of risk. Hubei Dinglong Chemical is currently generating about 0.18 per unit of risk. If you would invest 376.00 in Guangzhou Jointas Chemical on August 28, 2024 and sell it today you would earn a total of 192.00 from holding Guangzhou Jointas Chemical or generate 51.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Hubei Dinglong Chemical
Performance |
| Timeline |
| Guangzhou Jointas |
| Hubei Dinglong Chemical |
Guangzhou Jointas and Hubei Dinglong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Hubei Dinglong
The main advantage of trading using opposite Guangzhou Jointas and Hubei Dinglong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Hubei Dinglong 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 Hubei Dinglong will offset losses from the drop in Hubei Dinglong's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Shandong Gold Mining | Hubei Dinglong vs. Rongsheng Petrochemical 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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