Correlation Between Henan Shuanghui and Guangzhou Tinci
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By analyzing existing cross correlation between Henan Shuanghui Investment and Guangzhou Tinci Materials, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Guangzhou Tinci.
Diversification Opportunities for Henan Shuanghui and Guangzhou Tinci
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Henan and Guangzhou is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Guangzhou Tinci
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 2.13 times less return on investment than Guangzhou Tinci. But when comparing it to its historical volatility, Henan Shuanghui Investment is 3.15 times less risky than Guangzhou Tinci. It trades about 0.08 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,648 in Guangzhou Tinci Materials on October 11, 2024 and sell it today you would earn a total of 135.00 from holding Guangzhou Tinci Materials or generate 8.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Henan Shuanghui Investment vs. Guangzhou Tinci Materials
Performance |
Timeline |
Henan Shuanghui Inve |
Guangzhou Tinci Materials |
Henan Shuanghui and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Henan Shuanghui and Guangzhou Tinci
The main advantage of trading using opposite Henan Shuanghui and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.Henan Shuanghui vs. Bank of Suzhou | Henan Shuanghui vs. Peoples Insurance of | Henan Shuanghui vs. Ningxia Younglight Chemicals | Henan Shuanghui vs. Industrial Bank Co |
Guangzhou Tinci vs. Jinlong Machinery Electronic | Guangzhou Tinci vs. Qijing Machinery | Guangzhou Tinci vs. Gifore Agricultural Machinery | Guangzhou Tinci vs. Lutian Machinery 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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