Correlation Between Inner Mongolia and Guizhou Chanhen
Specify exactly 2 symbols:
By analyzing existing cross correlation between Inner Mongolia BaoTou and Guizhou Chanhen Chemical, you can compare the effects of market volatilities on Inner Mongolia and Guizhou Chanhen 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 Inner Mongolia with a short position of Guizhou Chanhen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Guizhou Chanhen.
Diversification Opportunities for Inner Mongolia and Guizhou Chanhen
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Inner and Guizhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Guizhou Chanhen Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou Chanhen Chemical and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Guizhou Chanhen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou Chanhen Chemical has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Guizhou Chanhen go up and down completely randomly.
Pair Corralation between Inner Mongolia and Guizhou Chanhen
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 1.36 times more return on investment than Guizhou Chanhen. However, Inner Mongolia is 1.36 times more volatile than Guizhou Chanhen Chemical. It trades about 0.15 of its potential returns per unit of risk. Guizhou Chanhen Chemical is currently generating about 0.14 per unit of risk. If you would invest 171.00 in Inner Mongolia BaoTou on September 1, 2024 and sell it today you would earn a total of 21.00 from holding Inner Mongolia BaoTou or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Guizhou Chanhen Chemical
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Guizhou Chanhen Chemical |
Inner Mongolia and Guizhou Chanhen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Guizhou Chanhen
The main advantage of trading using opposite Inner Mongolia and Guizhou Chanhen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Guizhou Chanhen 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 Guizhou Chanhen will offset losses from the drop in Guizhou Chanhen's long position.| Inner Mongolia vs. Beijing Jiaman Dress | Inner Mongolia vs. Puyang Huicheng Electronic | Inner Mongolia vs. TongFu Microelectronics Co | Inner Mongolia vs. Ningbo Kangqiang Electronics |
| Guizhou Chanhen vs. GKHT Medical Technology | Guizhou Chanhen vs. Shanghai Jinfeng Wine | Guizhou Chanhen vs. Guangdong Qunxing Toys | Guizhou Chanhen vs. Ningbo David Medical |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |