Correlation Between Guangzhou Jointas and Liaoning Dingjide
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Jointas Chemical and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Guangzhou Jointas and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Liaoning Dingjide.
Diversification Opportunities for Guangzhou Jointas and Liaoning Dingjide
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Liaoning is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Liaoning Dingjide
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Liaoning Dingjide. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Jointas Chemical is 1.19 times less risky than Liaoning Dingjide. The stock trades about -0.17 of its potential returns per unit of risk. The Liaoning Dingjide Petrochemical is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 3,391 in Liaoning Dingjide Petrochemical on October 17, 2024 and sell it today you would lose (362.00) from holding Liaoning Dingjide Petrochemical or give up 10.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Guangzhou Jointas |
| Liaoning Dingjide |
Guangzhou Jointas and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Liaoning Dingjide
The main advantage of trading using opposite Guangzhou Jointas and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| Liaoning Dingjide vs. Beijing Yanjing Brewery | Liaoning Dingjide vs. Haima Automobile Group | Liaoning Dingjide vs. Suzhou Oriental Semiconductor | Liaoning Dingjide vs. Guangzhou Haige Communications |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |