Correlation Between Gan Yuan and Guangzhou Tinci
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By analyzing existing cross correlation between Gan Yuan Foods and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Gan Yuan 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 Gan Yuan with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Guangzhou Tinci.
Diversification Opportunities for Gan Yuan and Guangzhou Tinci
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gan and Guangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods 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 Gan Yuan 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 Gan Yuan Foods 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 Gan Yuan i.e., Gan Yuan and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Gan Yuan and Guangzhou Tinci
Assuming the 90 days trading horizon Gan Yuan is expected to generate 1.35 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Gan Yuan Foods is 1.49 times less risky than Guangzhou Tinci. It trades about 0.24 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,395 in Guangzhou Tinci Materials on September 2, 2024 and sell it today you would earn a total of 1,074 from holding Guangzhou Tinci Materials or generate 76.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Gan Yuan Foods |
| Guangzhou Tinci Materials |
Gan Yuan and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Guangzhou Tinci
The main advantage of trading using opposite Gan Yuan and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan 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.| Gan Yuan vs. Dalian Thermal Power | Gan Yuan vs. Guocheng Mining Co | Gan Yuan vs. Southern PublishingMedia Co | Gan Yuan vs. Beijing Kaiwen Education |
| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Shandong Gold Mining |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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