Correlation Between Guangzhou Jointas and Strait Innovation
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Strait Innovation Internet, you can compare the effects of market volatilities on Guangzhou Jointas and Strait Innovation 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 Guangzhou Jointas with a short position of Strait Innovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Strait Innovation.
Diversification Opportunities for Guangzhou Jointas and Strait Innovation
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Strait is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Strait Innovation Internet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strait Innovation and Guangzhou Jointas 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 Guangzhou Jointas Chemical are associated (or correlated) with Strait Innovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strait Innovation has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Strait Innovation go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Strait Innovation
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Strait Innovation. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Jointas Chemical is 1.06 times less risky than Strait Innovation. The stock trades about -0.13 of its potential returns per unit of risk. The Strait Innovation Internet is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Strait Innovation Internet on September 26, 2024 and sell it today you would lose (2.00) from holding Strait Innovation Internet or give up 0.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Jointas Chemical vs. Strait Innovation Internet
Performance |
Timeline |
Guangzhou Jointas |
Strait Innovation |
Guangzhou Jointas and Strait Innovation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Jointas and Strait Innovation
The main advantage of trading using opposite Guangzhou Jointas and Strait Innovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Strait Innovation 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 Strait Innovation will offset losses from the drop in Strait Innovation's long position.Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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