Correlation Between Super Dragon and Guangzhou Tinci
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By analyzing existing cross correlation between Super Dragon Engineering Plastics and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Super Dragon 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 Super Dragon with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Dragon and Guangzhou Tinci.
Diversification Opportunities for Super Dragon and Guangzhou Tinci
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Super and Guangzhou is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Super Dragon Engineering Plast 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 Super Dragon 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 Super Dragon Engineering Plastics 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 Super Dragon i.e., Super Dragon and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Super Dragon and Guangzhou Tinci
Assuming the 90 days trading horizon Super Dragon Engineering Plastics is expected to generate 1.15 times more return on investment than Guangzhou Tinci. However, Super Dragon is 1.15 times more volatile than Guangzhou Tinci Materials. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.03 per unit of risk. If you would invest 4,493 in Super Dragon Engineering Plastics on September 4, 2024 and sell it today you would lose (496.00) from holding Super Dragon Engineering Plastics or give up 11.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Dragon Engineering Plast vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Super Dragon Enginee |
| Guangzhou Tinci Materials |
Super Dragon and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Dragon and Guangzhou Tinci
The main advantage of trading using opposite Super Dragon and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Dragon 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.| Super Dragon vs. Suzhou Douson Drilling | Super Dragon vs. Tianjin Pengling Rubber | Super Dragon vs. CSSC Offshore Marine | Super Dragon vs. Suzhou Xingye Material |
| Guangzhou Tinci vs. Chengdu Spaceon Electronics | Guangzhou Tinci vs. China Asset Management | Guangzhou Tinci vs. Anhui Liuguo Chemical | Guangzhou Tinci vs. CICC Fund Management |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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