Correlation Between Shanghai Phichem and Guangzhou Tinci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Phichem Material and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Shanghai Phichem 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 Shanghai Phichem with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Guangzhou Tinci.
Diversification Opportunities for Shanghai Phichem and Guangzhou Tinci
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material 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 Shanghai Phichem 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 Shanghai Phichem Material 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 Shanghai Phichem i.e., Shanghai Phichem and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Guangzhou Tinci
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 1.15 times more return on investment than Guangzhou Tinci. However, Shanghai Phichem is 1.15 times more volatile than Guangzhou Tinci Materials. It trades about 0.12 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.12 per unit of risk. If you would invest 1,058 in Shanghai Phichem Material on October 18, 2024 and sell it today you would earn a total of 475.00 from holding Shanghai Phichem Material or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Shanghai Phichem Material |
| Guangzhou Tinci Materials |
Shanghai Phichem and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Guangzhou Tinci
The main advantage of trading using opposite Shanghai Phichem and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem 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.| Shanghai Phichem vs. Xiangyang Automobile Bearing | Shanghai Phichem vs. Bloomage Biotechnology Corp | Shanghai Phichem vs. Beijing Jiaman Dress | Shanghai Phichem vs. Air China Ltd |
| Guangzhou Tinci vs. Jonjee Hi tech Industrial | Guangzhou Tinci vs. Orinko Advanced Plastics | Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Shanghai Phichem Material |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |