Correlation Between Yangmei Chemical and Guangxi Guitang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yangmei Chemical Co and Guangxi Guitang Group, you can compare the effects of market volatilities on Yangmei Chemical and Guangxi Guitang 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 Yangmei Chemical with a short position of Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Guangxi Guitang.
Diversification Opportunities for Yangmei Chemical and Guangxi Guitang
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Yangmei and Guangxi is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group and Yangmei Chemical 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 Yangmei Chemical Co are associated (or correlated) with Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Yangmei Chemical i.e., Yangmei Chemical and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Guangxi Guitang
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Guangxi Guitang. But the stock apears to be less risky and, when comparing its historical volatility, Yangmei Chemical Co is 1.72 times less risky than Guangxi Guitang. The stock trades about -0.12 of its potential returns per unit of risk. The Guangxi Guitang Group is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,214 in Guangxi Guitang Group on October 22, 2024 and sell it today you would lose (38.00) from holding Guangxi Guitang Group or give up 3.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Guangxi Guitang Group
Performance |
| Timeline |
| Yangmei Chemical |
| Guangxi Guitang Group |
Yangmei Chemical and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Guangxi Guitang
The main advantage of trading using opposite Yangmei Chemical and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Yangmei Chemical vs. Mengtian Home Group | Yangmei Chemical vs. Ningbo MedicalSystem Biotechnology | Yangmei Chemical vs. Bloomage Biotechnology Corp | Yangmei Chemical vs. UE Furniture Co |
| Guangxi Guitang vs. Jiahe Foods Industry | Guangxi Guitang vs. Fibocom Wireless | Guangxi Guitang vs. Xiangyang Automobile Bearing | Guangxi Guitang vs. Fujian Anjoy Foods |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |