Correlation Between Astar and Guangdong Tianhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between Astar and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Astar and Guangdong Tianhe 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 Astar with a short position of Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Guangdong Tianhe.
Diversification Opportunities for Astar and Guangdong Tianhe
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astar and Guangdong is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr and Astar 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 Astar are associated (or correlated) with Guangdong Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Astar i.e., Astar and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Astar and Guangdong Tianhe
Assuming the 90 days trading horizon Astar is expected to under-perform the Guangdong Tianhe. In addition to that, Astar is 1.82 times more volatile than Guangdong Tianhe Agricultural. It trades about -0.19 of its total potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about -0.06 per unit of volatility. If you would invest 621.00 in Guangdong Tianhe Agricultural on October 28, 2024 and sell it today you would lose (22.00) from holding Guangdong Tianhe Agricultural or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astar vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Astar |
| Guangdong Tianhe Agr |
Astar and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Guangdong Tianhe
The main advantage of trading using opposite Astar and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Guangdong Tianhe 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 Guangdong Tianhe will offset losses from the drop in Guangdong Tianhe's long position.The idea behind Astar and Guangdong Tianhe Agricultural pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Guangdong Tianhe vs. Beijing Kingsoft Office | Guangdong Tianhe vs. Jiangsu Jinling Sports | Guangdong Tianhe vs. Shenzhen Urban Transport | Guangdong Tianhe vs. China World Trade |
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.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |