Correlation Between China Marine and Guangzhou Tinci
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By analyzing existing cross correlation between China Marine Information and Guangzhou Tinci Materials, you can compare the effects of market volatilities on China Marine 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 China Marine with a short position of Guangzhou Tinci. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Marine and Guangzhou Tinci.
Diversification Opportunities for China Marine and Guangzhou Tinci
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Guangzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding China Marine Information 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 China Marine 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 China Marine Information 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 China Marine i.e., China Marine and Guangzhou Tinci go up and down completely randomly.
Pair Corralation between China Marine and Guangzhou Tinci
Assuming the 90 days trading horizon China Marine Information is expected to generate 0.89 times more return on investment than Guangzhou Tinci. However, China Marine Information is 1.13 times less risky than Guangzhou Tinci. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Tinci Materials is currently generating about -0.04 per unit of risk. If you would invest 2,341 in China Marine Information on September 26, 2024 and sell it today you would earn a total of 573.00 from holding China Marine Information or generate 24.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Marine Information vs. Guangzhou Tinci Materials
Performance |
Timeline |
China Marine Information |
Guangzhou Tinci Materials |
China Marine and Guangzhou Tinci Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Marine and Guangzhou Tinci
The main advantage of trading using opposite China Marine and Guangzhou Tinci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Marine 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.China Marine vs. Tianjin Pengling Rubber | China Marine vs. Guangzhou Tinci Materials | China Marine vs. Ningxia Building Materials | China Marine vs. Jiugui Liquor 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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