Correlation Between Shantou Wanshun and Guangzhou Tinci
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By analyzing existing cross correlation between Shantou Wanshun Package and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Shantou Wanshun 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 Shantou Wanshun with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantou Wanshun and Guangzhou Tinci.
Diversification Opportunities for Shantou Wanshun and Guangzhou Tinci
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shantou and Guangzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Shantou Wanshun Package 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 Shantou Wanshun 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 Shantou Wanshun Package 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 Shantou Wanshun i.e., Shantou Wanshun and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Shantou Wanshun and Guangzhou Tinci
Assuming the 90 days trading horizon Shantou Wanshun Package is expected to generate 1.01 times more return on investment than Guangzhou Tinci. However, Shantou Wanshun is 1.01 times more volatile than Guangzhou Tinci Materials. It trades about -0.04 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.05 per unit of risk. If you would invest 974.00 in Shantou Wanshun Package on October 18, 2024 and sell it today you would lose (510.00) from holding Shantou Wanshun Package or give up 52.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shantou Wanshun Package vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Shantou Wanshun Package |
| Guangzhou Tinci Materials |
Shantou Wanshun and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantou Wanshun and Guangzhou Tinci
The main advantage of trading using opposite Shantou Wanshun and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantou Wanshun 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.| Shantou Wanshun vs. China Mobile Limited | Shantou Wanshun vs. Tongyu Communication | Shantou Wanshun vs. Fibocom Wireless | Shantou Wanshun vs. Sinomach Automobile Co |
| Guangzhou Tinci vs. Rising Nonferrous Metals | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Anhui Transport Consulting | Guangzhou Tinci vs. Xinjiang Beixin RoadBridge |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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