Correlation Between Guangzhou Jointas and RoadMain T
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and RoadMain T Co, you can compare the effects of market volatilities on Guangzhou Jointas and RoadMain T 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 RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and RoadMain T.
Diversification Opportunities for Guangzhou Jointas and RoadMain T
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and RoadMain is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T 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 RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and RoadMain T go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and RoadMain T
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the RoadMain T. In addition to that, Guangzhou Jointas is 1.15 times more volatile than RoadMain T Co. It trades about -0.14 of its total potential returns per unit of risk. RoadMain T Co is currently generating about -0.04 per unit of volatility. If you would invest 3,060 in RoadMain T Co on September 27, 2024 and sell it today you would lose (104.00) from holding RoadMain T Co or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. RoadMain T Co
Performance |
| Timeline |
| Guangzhou Jointas |
| RoadMain T |
Guangzhou Jointas and RoadMain T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and RoadMain T
The main advantage of trading using opposite Guangzhou Jointas and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T'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 |
| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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