Correlation Between Guangdong Tianhe and Hunan Nanling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Tianhe Agricultural and Hunan Nanling Industrial, you can compare the effects of market volatilities on Guangdong Tianhe and Hunan Nanling 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 Guangdong Tianhe with a short position of Hunan Nanling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and Hunan Nanling.
Diversification Opportunities for Guangdong Tianhe and Hunan Nanling
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Hunan is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural and Hunan Nanling Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Nanling Industrial and Guangdong Tianhe 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 Guangdong Tianhe Agricultural are associated (or correlated) with Hunan Nanling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Nanling Industrial has no effect on the direction of Guangdong Tianhe i.e., Guangdong Tianhe and Hunan Nanling go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and Hunan Nanling
Assuming the 90 days trading horizon Guangdong Tianhe Agricultural is expected to under-perform the Hunan Nanling. In addition to that, Guangdong Tianhe is 1.16 times more volatile than Hunan Nanling Industrial. It trades about -0.02 of its total potential returns per unit of risk. Hunan Nanling Industrial is currently generating about -0.01 per unit of volatility. If you would invest 1,345 in Hunan Nanling Industrial on October 30, 2024 and sell it today you would lose (315.00) from holding Hunan Nanling Industrial or give up 23.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Tianhe Agricultural vs. Hunan Nanling Industrial
Performance |
| Timeline |
| Guangdong Tianhe Agr |
| Hunan Nanling Industrial |
Guangdong Tianhe and Hunan Nanling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Tianhe and Hunan Nanling
The main advantage of trading using opposite Guangdong Tianhe and Hunan Nanling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe position performs unexpectedly, Hunan Nanling 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 Hunan Nanling will offset losses from the drop in Hunan Nanling's long position.| Guangdong Tianhe vs. Longjian Road Bridge | Guangdong Tianhe vs. Sichuan Fulin Transportation | Guangdong Tianhe vs. Innovative Medical Management | Guangdong Tianhe vs. Shaanxi Broadcast TV |
| Hunan Nanling vs. Zijin Mining Group | Hunan Nanling vs. Wanhua Chemical Group | Hunan Nanling vs. Baoshan Iron Steel | Hunan Nanling 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |