Correlation Between Guangzhou Haozhi and Guangzhou Tinci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Guangzhou Haozhi 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 Guangzhou Haozhi with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Guangzhou Tinci.
Diversification Opportunities for Guangzhou Haozhi and Guangzhou Tinci
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangzhou and Guangzhou is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial 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 Guangzhou Haozhi 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 Guangzhou Haozhi Industrial 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 Guangzhou Haozhi i.e., Guangzhou Haozhi and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Guangzhou Tinci
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 2.18 times more return on investment than Guangzhou Tinci. However, Guangzhou Haozhi is 2.18 times more volatile than Guangzhou Tinci Materials. It trades about 0.22 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.08 per unit of risk. If you would invest 1,883 in Guangzhou Haozhi Industrial on November 3, 2024 and sell it today you would earn a total of 306.00 from holding Guangzhou Haozhi Industrial or generate 16.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Guangzhou Tinci Materials |
Guangzhou Haozhi and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Guangzhou Tinci
The main advantage of trading using opposite Guangzhou Haozhi and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi 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.| Guangzhou Haozhi vs. Agricultural Bank of | Guangzhou Haozhi vs. Industrial and Commercial | Guangzhou Haozhi vs. Bank of China | Guangzhou Haozhi vs. PetroChina Co Ltd |
| Guangzhou Tinci vs. Jinhui Mining Co | Guangzhou Tinci vs. China Life Insurance | Guangzhou Tinci vs. Easyhome New Retail | Guangzhou Tinci vs. Guangdong Silvere Sci |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stocks Directory Find actively traded stocks across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |