Correlation Between RoadMain T and Guangzhou Jointas
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By analyzing existing cross correlation between RoadMain T Co and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on RoadMain T and Guangzhou Jointas 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 RoadMain T with a short position of Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of RoadMain T and Guangzhou Jointas.
Diversification Opportunities for RoadMain T and Guangzhou Jointas
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between RoadMain and Guangzhou is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding RoadMain T Co and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas and RoadMain T 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 RoadMain T Co are associated (or correlated) with Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of RoadMain T i.e., RoadMain T and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between RoadMain T and Guangzhou Jointas
Assuming the 90 days trading horizon RoadMain T Co is expected to generate 0.87 times more return on investment than Guangzhou Jointas. However, RoadMain T Co is 1.15 times less risky than Guangzhou Jointas. It trades about -0.04 of its potential returns per unit of risk. Guangzhou Jointas Chemical is currently generating about -0.14 per unit of risk. If you would invest 3,060 in RoadMain T Co on September 27, 2024 and sell it today you would lose (104.00) from holding RoadMain T Co or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RoadMain T Co vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| RoadMain T |
| Guangzhou Jointas |
RoadMain T and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RoadMain T and Guangzhou Jointas
The main advantage of trading using opposite RoadMain T and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RoadMain T position performs unexpectedly, Guangzhou Jointas 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 Jointas will offset losses from the drop in Guangzhou Jointas' long position.| RoadMain T vs. Ming Yang Smart | RoadMain T vs. 159681 | RoadMain T vs. 159005 | RoadMain T vs. Loctek Ergonomic Technology |
| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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