Correlation Between GRIPM Advanced and Cangzhou Mingzhu
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By analyzing existing cross correlation between GRIPM Advanced Materials and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on GRIPM Advanced and Cangzhou Mingzhu 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 GRIPM Advanced with a short position of Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Cangzhou Mingzhu.
Diversification Opportunities for GRIPM Advanced and Cangzhou Mingzhu
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRIPM and Cangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic and GRIPM Advanced 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 GRIPM Advanced Materials are associated (or correlated) with Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Cangzhou Mingzhu
Assuming the 90 days trading horizon GRIPM Advanced Materials is expected to generate 1.49 times more return on investment than Cangzhou Mingzhu. However, GRIPM Advanced is 1.49 times more volatile than Cangzhou Mingzhu Plastic. It trades about 0.04 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.02 per unit of risk. If you would invest 3,084 in GRIPM Advanced Materials on August 29, 2024 and sell it today you would earn a total of 57.00 from holding GRIPM Advanced Materials or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Cangzhou Mingzhu Plastic |
GRIPM Advanced and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Cangzhou Mingzhu
The main advantage of trading using opposite GRIPM Advanced and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced vs. Shandong Gold Mining |
| Cangzhou Mingzhu vs. Zhejiang Kingland Pipeline | Cangzhou Mingzhu vs. COL Digital Publishing | Cangzhou Mingzhu vs. Suzhou Novoprotein Scientific | Cangzhou Mingzhu vs. Xiangyang Automobile Bearing |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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