Correlation Between Guangzhou Jointas and Hefei Metalforming
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Hefei Metalforming Mach, you can compare the effects of market volatilities on Guangzhou Jointas and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Hefei Metalforming.
Diversification Opportunities for Guangzhou Jointas and Hefei Metalforming
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Hefei is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Hefei Metalforming
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 0.69 times more return on investment than Hefei Metalforming. However, Guangzhou Jointas Chemical is 1.44 times less risky than Hefei Metalforming. It trades about 0.32 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.12 per unit of risk. If you would invest 468.00 in Guangzhou Jointas Chemical on November 4, 2024 and sell it today you would earn a total of 59.00 from holding Guangzhou Jointas Chemical or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Hefei Metalforming Mach
Performance |
| Timeline |
| Guangzhou Jointas |
| Hefei Metalforming Mach |
Guangzhou Jointas and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Hefei Metalforming
The main advantage of trading using opposite Guangzhou Jointas and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Guangzhou Jointas vs. Bsm Chemical Co | Guangzhou Jointas vs. Kuang Chi Technologies | Guangzhou Jointas vs. Ningbo Bohui Chemical | Guangzhou Jointas vs. Linktel Technologies Co |
| Hefei Metalforming vs. Zhejiang Publishing Media | Hefei Metalforming vs. Eyebright Medical Technology | Hefei Metalforming vs. Bangyan Technology Co | Hefei Metalforming vs. Jinyu Bio Technology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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