Correlation Between Aba Chemicals and Guangdong Tengen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Aba Chemicals Corp and Guangdong Tengen Industrial, you can compare the effects of market volatilities on Aba Chemicals and Guangdong Tengen 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 Guangdong Tengen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Guangdong Tengen.
Diversification Opportunities for Aba Chemicals and Guangdong Tengen
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aba and Guangdong is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Guangdong Tengen Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tengen Ind 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 Guangdong Tengen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tengen Ind has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Guangdong Tengen go up and down completely randomly.
Pair Corralation between Aba Chemicals and Guangdong Tengen
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to under-perform the Guangdong Tengen. But the stock apears to be less risky and, when comparing its historical volatility, Aba Chemicals Corp is 1.95 times less risky than Guangdong Tengen. The stock trades about -0.17 of its potential returns per unit of risk. The Guangdong Tengen Industrial is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,012 in Guangdong Tengen Industrial on November 3, 2024 and sell it today you would lose (37.00) from holding Guangdong Tengen Industrial or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aba Chemicals Corp vs. Guangdong Tengen Industrial
Performance |
| Timeline |
| Aba Chemicals Corp |
| Guangdong Tengen Ind |
Aba Chemicals and Guangdong Tengen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aba Chemicals and Guangdong Tengen
The main advantage of trading using opposite Aba Chemicals and Guangdong Tengen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Guangdong Tengen 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 Guangdong Tengen will offset losses from the drop in Guangdong Tengen's long position.| Aba Chemicals vs. Shenzhen AV Display Co | Aba Chemicals vs. Sportsoul Co Ltd | Aba Chemicals vs. Glodon Software Co | Aba Chemicals vs. Lander Sports Development |
| Guangdong Tengen vs. Zijin Mining Group | Guangdong Tengen vs. Wanhua Chemical Group | Guangdong Tengen vs. Baoshan Iron Steel | Guangdong Tengen 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |