Correlation Between Aba Chemicals and Guangzhou Seagull
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By analyzing existing cross correlation between Aba Chemicals Corp and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Aba Chemicals and Guangzhou Seagull 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 Aba Chemicals with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Guangzhou Seagull.
Diversification Opportunities for Aba Chemicals and Guangzhou Seagull
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aba and Guangzhou is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Aba Chemicals and Guangzhou Seagull
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Guangzhou Seagull. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.07 times less risky than Guangzhou Seagull. The stock trades about -0.24 of its potential returns per unit of risk. The Guangzhou Seagull Kitchen is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 312.00 in Guangzhou Seagull Kitchen on October 26, 2024 and sell it today you would lose (33.00) from holding Guangzhou Seagull Kitchen or give up 10.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Aba Chemicals Corp |
| Guangzhou Seagull Kitchen |
Aba Chemicals and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Guangzhou Seagull
The main advantage of trading using opposite Aba Chemicals and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Guangzhou Seagull 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 Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Aba Chemicals vs. Qilu Bank Co | Aba Chemicals vs. Xinjiang Baodi Mining | Aba Chemicals vs. Guangdong Qunxing Toys | Aba Chemicals vs. HeNan Splendor Science |
| Guangzhou Seagull vs. Ziel Home Furnishing | Guangzhou Seagull vs. Guangdong Jingyi Metal | Guangzhou Seagull vs. Aba Chemicals Corp | Guangzhou Seagull vs. Shanghai Shuixing Home |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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