Correlation Between GRIPM Advanced and Xinke Material
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By analyzing existing cross correlation between GRIPM Advanced Materials and Xinke Material, you can compare the effects of market volatilities on GRIPM Advanced and Xinke Material 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 Xinke Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIPM Advanced and Xinke Material.
Diversification Opportunities for GRIPM Advanced and Xinke Material
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GRIPM and Xinke is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding GRIPM Advanced Materials and Xinke Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinke Material 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 Xinke Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinke Material has no effect on the direction of GRIPM Advanced i.e., GRIPM Advanced and Xinke Material go up and down completely randomly.
Pair Corralation between GRIPM Advanced and Xinke Material
Assuming the 90 days trading horizon GRIPM Advanced is expected to generate 1.45 times less return on investment than Xinke Material. In addition to that, GRIPM Advanced is 1.03 times more volatile than Xinke Material. It trades about 0.14 of its total potential returns per unit of risk. Xinke Material is currently generating about 0.2 per unit of volatility. If you would invest 204.00 in Xinke Material on August 25, 2024 and sell it today you would earn a total of 25.00 from holding Xinke Material or generate 12.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIPM Advanced Materials vs. Xinke Material
Performance |
| Timeline |
| GRIPM Advanced Materials |
| Xinke Material |
GRIPM Advanced and Xinke Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIPM Advanced and Xinke Material
The main advantage of trading using opposite GRIPM Advanced and Xinke Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIPM Advanced position performs unexpectedly, Xinke Material 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 Xinke Material will offset losses from the drop in Xinke Material'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 |
| Xinke Material vs. Epoxy Base Electronic | Xinke Material vs. Kunshan Guoli Electronic | Xinke Material vs. Weihai Honglin Electronic | Xinke Material vs. Unigroup Guoxin Microelectronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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