Correlation Between Guangdong Transtek and Anhui Jinhe
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By analyzing existing cross correlation between Guangdong Transtek Medical and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Guangdong Transtek and Anhui Jinhe 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 Guangdong Transtek with a short position of Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Anhui Jinhe.
Diversification Opportunities for Guangdong Transtek and Anhui Jinhe
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Anhui is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial and Guangdong Transtek 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 Guangdong Transtek Medical are associated (or correlated) with Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Guangdong Transtek i.e., Guangdong Transtek and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Anhui Jinhe
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the Anhui Jinhe. In addition to that, Guangdong Transtek is 3.18 times more volatile than Anhui Jinhe Industrial. It trades about -0.04 of its total potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about -0.08 per unit of volatility. If you would invest 2,498 in Anhui Jinhe Industrial on October 12, 2024 and sell it today you would lose (149.00) from holding Anhui Jinhe Industrial or give up 5.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Guangdong Transtek |
| Anhui Jinhe Industrial |
Guangdong Transtek and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Anhui Jinhe
The main advantage of trading using opposite Guangdong Transtek and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek position performs unexpectedly, Anhui Jinhe 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 Anhui Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Guangdong Transtek vs. Shenzhen Silver Basis | Guangdong Transtek vs. Tianjin Silvery Dragon | Guangdong Transtek vs. Mango Excellent Media | Guangdong Transtek vs. Jiangxi Naipu Mining |
| Anhui Jinhe vs. Chison Medical Technologies | Anhui Jinhe vs. Anhui Gujing Distillery | Anhui Jinhe vs. Guangdong Transtek Medical | Anhui Jinhe vs. Tinavi Medical Technologies |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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