Correlation Between Chengdu Spaceon and Guangzhou Tinci
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By analyzing existing cross correlation between Chengdu Spaceon Electronics and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Chengdu Spaceon and Guangzhou Tinci 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 Chengdu Spaceon with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Spaceon and Guangzhou Tinci.
Diversification Opportunities for Chengdu Spaceon and Guangzhou Tinci
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Guangzhou is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Spaceon Electronics and Guangzhou Tinci Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Tinci Materials and Chengdu Spaceon 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 Chengdu Spaceon Electronics are associated (or correlated) with Guangzhou Tinci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Tinci Materials has no effect on the direction of Chengdu Spaceon i.e., Chengdu Spaceon and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Chengdu Spaceon and Guangzhou Tinci
Assuming the 90 days trading horizon Chengdu Spaceon Electronics is expected to generate 0.67 times more return on investment than Guangzhou Tinci. However, Chengdu Spaceon Electronics is 1.49 times less risky than Guangzhou Tinci. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.08 per unit of risk. If you would invest 1,783 in Chengdu Spaceon Electronics on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Chengdu Spaceon Electronics or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Spaceon Electronics vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Chengdu Spaceon Elec |
| Guangzhou Tinci Materials |
Chengdu Spaceon and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Spaceon and Guangzhou Tinci
The main advantage of trading using opposite Chengdu Spaceon and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Spaceon position performs unexpectedly, Guangzhou Tinci 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 Guangzhou Tinci will offset losses from the drop in Guangzhou Tinci's long position.| Chengdu Spaceon vs. Gansu Jiu Steel | Chengdu Spaceon vs. Shandong Mining Machinery | Chengdu Spaceon vs. Aba Chemicals Corp | Chengdu Spaceon vs. BlueFocus Communication Group |
| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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