Correlation Between Guangzhou Automobile and Tinavi Medical
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By analyzing existing cross correlation between Guangzhou Automobile Group and Tinavi Medical Technologies, you can compare the effects of market volatilities on Guangzhou Automobile and Tinavi Medical 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 Guangzhou Automobile with a short position of Tinavi Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Tinavi Medical.
Diversification Opportunities for Guangzhou Automobile and Tinavi Medical
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Tinavi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group and Tinavi Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinavi Medical Techn and Guangzhou Automobile 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 Guangzhou Automobile Group are associated (or correlated) with Tinavi Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinavi Medical Techn has no effect on the direction of Guangzhou Automobile i.e., Guangzhou Automobile and Tinavi Medical go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Tinavi Medical
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to generate 0.97 times more return on investment than Tinavi Medical. However, Guangzhou Automobile Group is 1.03 times less risky than Tinavi Medical. It trades about -0.01 of its potential returns per unit of risk. Tinavi Medical Technologies is currently generating about -0.05 per unit of risk. If you would invest 884.00 in Guangzhou Automobile Group on October 30, 2024 and sell it today you would lose (24.00) from holding Guangzhou Automobile Group or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Tinavi Medical Technologies
Performance |
| Timeline |
| Guangzhou Automobile |
| Tinavi Medical Techn |
Guangzhou Automobile and Tinavi Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Tinavi Medical
The main advantage of trading using opposite Guangzhou Automobile and Tinavi Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile position performs unexpectedly, Tinavi Medical 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 Tinavi Medical will offset losses from the drop in Tinavi Medical's long position.| Guangzhou Automobile vs. China Publishing Media | Guangzhou Automobile vs. Southern PublishingMedia Co | Guangzhou Automobile vs. Chongqing Changan Automobile | Guangzhou Automobile vs. Sinomach Automobile Co |
| Tinavi Medical vs. Agricultural Bank of | Tinavi Medical vs. Industrial and Commercial | Tinavi Medical vs. Bank of China | Tinavi Medical vs. China Construction Bank |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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