Correlation Between Guangdong Brandmax and Tongling Nonferrous
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Guangdong Brandmax and Tongling Nonferrous 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 Brandmax with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Tongling Nonferrous.
Diversification Opportunities for Guangdong Brandmax and Tongling Nonferrous
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Tongling is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Guangdong Brandmax 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 Brandmax Marketing are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Tongling Nonferrous
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.9 times more return on investment than Tongling Nonferrous. However, Guangdong Brandmax is 1.9 times more volatile than Tongling Nonferrous Metals. It trades about 0.11 of its potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.01 per unit of risk. If you would invest 639.00 in Guangdong Brandmax Marketing on September 13, 2024 and sell it today you would earn a total of 372.00 from holding Guangdong Brandmax Marketing or generate 58.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Guangdong Brandmax |
| Tongling Nonferrous |
Guangdong Brandmax and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Tongling Nonferrous
The main advantage of trading using opposite Guangdong Brandmax and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Guangdong Brandmax vs. Jiangsu Yanghe Brewery | Guangdong Brandmax vs. Jiangyin Jianghua Microelectronics | Guangdong Brandmax vs. YiDong Electronics Technology | Guangdong Brandmax vs. Tsingtao Brewery Co |
| Tongling Nonferrous vs. Zhejiang Kingland Pipeline | Tongling Nonferrous vs. Ningbo Construction Co | Tongling Nonferrous vs. GKHT Medical Technology | Tongling Nonferrous vs. Double Medical Technology |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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