Correlation Between GKHT Medical and Tongling Nonferrous
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By analyzing existing cross correlation between GKHT Medical Technology and Tongling Nonferrous Metals, you can compare the effects of market volatilities on GKHT Medical 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 GKHT Medical with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of GKHT Medical and Tongling Nonferrous.
Diversification Opportunities for GKHT Medical and Tongling Nonferrous
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GKHT and Tongling is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding GKHT Medical Technology and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and GKHT Medical 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 GKHT Medical Technology 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 GKHT Medical i.e., GKHT Medical and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between GKHT Medical and Tongling Nonferrous
Assuming the 90 days trading horizon GKHT Medical Technology is expected to under-perform the Tongling Nonferrous. In addition to that, GKHT Medical is 1.45 times more volatile than Tongling Nonferrous Metals. It trades about -0.02 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.05 per unit of volatility. If you would invest 284.00 in Tongling Nonferrous Metals on September 14, 2024 and sell it today you would earn a total of 74.00 from holding Tongling Nonferrous Metals or generate 26.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GKHT Medical Technology vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| GKHT Medical Technology |
| Tongling Nonferrous |
GKHT Medical and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GKHT Medical and Tongling Nonferrous
The main advantage of trading using opposite GKHT Medical and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GKHT Medical 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.| GKHT Medical vs. Industrial and Commercial | GKHT Medical vs. Kweichow Moutai Co | GKHT Medical vs. Agricultural Bank of | GKHT Medical vs. China Mobile Limited |
| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Wanhua Chemical Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Shandong Gold Mining |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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