Correlation Between Aba Chemicals and Guangzhou Jinyi
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By analyzing existing cross correlation between Aba Chemicals Corp and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Aba Chemicals and Guangzhou Jinyi 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 Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Guangzhou Jinyi.
Diversification Opportunities for Aba Chemicals and Guangzhou Jinyi
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Guangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Aba Chemicals and Guangzhou Jinyi
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Guangzhou Jinyi. In addition to that, Aba Chemicals is 1.07 times more volatile than Guangzhou Jinyi Media. It trades about -0.01 of its total potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.0 per unit of volatility. If you would invest 992.00 in Guangzhou Jinyi Media on September 3, 2024 and sell it today you would lose (247.00) from holding Guangzhou Jinyi Media or give up 24.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Aba Chemicals Corp |
| Guangzhou Jinyi Media |
Aba Chemicals and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Guangzhou Jinyi
The main advantage of trading using opposite Aba Chemicals and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Guangzhou Jinyi 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 Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Aba Chemicals vs. StarPower Semiconductor | Aba Chemicals vs. Suzhou Weizhixiang Food | Aba Chemicals vs. Shanghai Xinhua Media | Aba Chemicals vs. Beijing Bashi Media |
| Guangzhou Jinyi vs. Gansu Jiu Steel | Guangzhou Jinyi vs. Ming Yang Smart | Guangzhou Jinyi vs. Aba Chemicals Corp | Guangzhou Jinyi vs. Loctek Ergonomic Technology |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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