Correlation Between Anhui Liuguo and Guangzhou Tinci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Liuguo Chemical and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Anhui Liuguo 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 Anhui Liuguo with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Liuguo and Guangzhou Tinci.
Diversification Opportunities for Anhui Liuguo and Guangzhou Tinci
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Guangzhou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Liuguo Chemical 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 Anhui Liuguo 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 Anhui Liuguo Chemical 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 Anhui Liuguo i.e., Anhui Liuguo and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Anhui Liuguo and Guangzhou Tinci
Assuming the 90 days trading horizon Anhui Liuguo Chemical is expected to generate 1.6 times more return on investment than Guangzhou Tinci. However, Anhui Liuguo is 1.6 times more volatile than Guangzhou Tinci Materials. It trades about 0.2 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.08 per unit of risk. If you would invest 512.00 in Anhui Liuguo Chemical on September 12, 2024 and sell it today you would earn a total of 126.00 from holding Anhui Liuguo Chemical or generate 24.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Liuguo Chemical vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Anhui Liuguo Chemical |
| Guangzhou Tinci Materials |
Anhui Liuguo and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Liuguo and Guangzhou Tinci
The main advantage of trading using opposite Anhui Liuguo and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Liuguo 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.| Anhui Liuguo vs. ButOne Information Corp | Anhui Liuguo vs. Do Fluoride Chemicals Co | Anhui Liuguo vs. Dymatic Chemicals | Anhui Liuguo vs. Focus Media Information |
| Guangzhou Tinci vs. Zijin Mining Group | Guangzhou Tinci vs. Wanhua Chemical Group | Guangzhou Tinci vs. Baoshan Iron Steel | Guangzhou Tinci vs. Rongsheng Petrochemical 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |