Correlation Between Zhejiang Xiantong and Guangzhou Tinci
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By analyzing existing cross correlation between Zhejiang Xiantong RubberPlastic and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Zhejiang Xiantong 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 Zhejiang Xiantong with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Xiantong and Guangzhou Tinci.
Diversification Opportunities for Zhejiang Xiantong and Guangzhou Tinci
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhejiang and Guangzhou is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Xiantong RubberPlasti 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 Zhejiang Xiantong 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 Zhejiang Xiantong RubberPlastic 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 Zhejiang Xiantong i.e., Zhejiang Xiantong and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Zhejiang Xiantong and Guangzhou Tinci
Assuming the 90 days trading horizon Zhejiang Xiantong is expected to generate 1.66 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Zhejiang Xiantong RubberPlastic is 1.63 times less risky than Guangzhou Tinci. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,702 in Guangzhou Tinci Materials on October 24, 2024 and sell it today you would earn a total of 173.00 from holding Guangzhou Tinci Materials or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Xiantong RubberPlasti vs. Guangzhou Tinci Materials
Performance |
| Timeline |
| Zhejiang Xiantong |
| Guangzhou Tinci Materials |
Zhejiang Xiantong and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Xiantong and Guangzhou Tinci
The main advantage of trading using opposite Zhejiang Xiantong and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Xiantong 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.| Zhejiang Xiantong vs. Industrial Bank Co | Zhejiang Xiantong vs. Zhejiang Kingland Pipeline | Zhejiang Xiantong vs. Jiangsu Financial Leasing | Zhejiang Xiantong vs. Postal Savings Bank |
| Guangzhou Tinci vs. China Minmetals Rare | Guangzhou Tinci vs. Guangzhou Haozhi Industrial | Guangzhou Tinci vs. Hengli Industrial Development | Guangzhou Tinci vs. Hainan Mining 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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