Correlation Between Guangdong Tianhe and 159681
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By analyzing existing cross correlation between Guangdong Tianhe Agricultural and 159681, you can compare the effects of market volatilities on Guangdong Tianhe and 159681 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 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and 159681.
Diversification Opportunities for Guangdong Tianhe and 159681
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and 159681 is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 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 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of Guangdong Tianhe i.e., Guangdong Tianhe and 159681 go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and 159681
Assuming the 90 days trading horizon Guangdong Tianhe Agricultural is expected to under-perform the 159681. In addition to that, Guangdong Tianhe is 2.48 times more volatile than 159681. It trades about -0.03 of its total potential returns per unit of risk. 159681 is currently generating about 0.04 per unit of volatility. If you would invest 96.00 in 159681 on September 26, 2024 and sell it today you would earn a total of 1.00 from holding 159681 or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Tianhe Agricultural vs. 159681
Performance |
| Timeline |
| Guangdong Tianhe Agr |
| 159681 |
Guangdong Tianhe and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Tianhe and 159681
The main advantage of trading using opposite Guangdong Tianhe and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681's long position.| Guangdong Tianhe vs. Zijin Mining Group | Guangdong Tianhe vs. Wanhua Chemical Group | Guangdong Tianhe vs. Baoshan Iron Steel | Guangdong Tianhe 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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