Correlation Between Guangdong Transtek and Anhui Xinhua
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By analyzing existing cross correlation between Guangdong Transtek Medical and Anhui Xinhua Media, you can compare the effects of market volatilities on Guangdong Transtek and Anhui Xinhua 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 Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Anhui Xinhua.
Diversification Opportunities for Guangdong Transtek and Anhui Xinhua
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Anhui is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of Guangdong Transtek i.e., Guangdong Transtek and Anhui Xinhua go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Anhui Xinhua
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to under-perform the Anhui Xinhua. In addition to that, Guangdong Transtek is 3.79 times more volatile than Anhui Xinhua Media. It trades about -0.11 of its total potential returns per unit of risk. Anhui Xinhua Media is currently generating about -0.23 per unit of volatility. If you would invest 765.00 in Anhui Xinhua Media on October 12, 2024 and sell it today you would lose (63.00) from holding Anhui Xinhua Media or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Anhui Xinhua Media
Performance |
| Timeline |
| Guangdong Transtek |
| Anhui Xinhua Media |
Guangdong Transtek and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Anhui Xinhua
The main advantage of trading using opposite Guangdong Transtek and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek position performs unexpectedly, Anhui Xinhua 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 Xinhua will offset losses from the drop in Anhui Xinhua'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 Xinhua vs. Touchstone International Medical | Anhui Xinhua vs. Guangdong Transtek Medical | Anhui Xinhua vs. Chison Medical Technologies | Anhui Xinhua vs. Winner Medical Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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