Correlation Between Guangzhou Jointas and Shenzhen Noposion
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Shenzhen Noposion Agrochemicals, you can compare the effects of market volatilities on Guangzhou Jointas and Shenzhen Noposion 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 Shenzhen Noposion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Shenzhen Noposion.
Diversification Opportunities for Guangzhou Jointas and Shenzhen Noposion
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Shenzhen is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Shenzhen Noposion Agrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Noposion 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 Shenzhen Noposion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Noposion has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Shenzhen Noposion go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Shenzhen Noposion
Assuming the 90 days trading horizon Guangzhou Jointas is expected to generate 1.24 times less return on investment than Shenzhen Noposion. In addition to that, Guangzhou Jointas is 1.12 times more volatile than Shenzhen Noposion Agrochemicals. It trades about 0.17 of its total potential returns per unit of risk. Shenzhen Noposion Agrochemicals is currently generating about 0.23 per unit of volatility. If you would invest 797.00 in Shenzhen Noposion Agrochemicals on September 24, 2024 and sell it today you would earn a total of 374.00 from holding Shenzhen Noposion Agrochemicals or generate 46.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangzhou Jointas Chemical vs. Shenzhen Noposion Agrochemical
Performance |
Timeline |
Guangzhou Jointas |
Shenzhen Noposion |
Guangzhou Jointas and Shenzhen Noposion Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangzhou Jointas and Shenzhen Noposion
The main advantage of trading using opposite Guangzhou Jointas and Shenzhen Noposion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Shenzhen Noposion 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 Shenzhen Noposion will offset losses from the drop in Shenzhen Noposion's long position.Guangzhou Jointas vs. Ningbo Tip Rubber | Guangzhou Jointas vs. Orinko Advanced Plastics | Guangzhou Jointas vs. Jinsanjiang Silicon Material | Guangzhou Jointas vs. CareRay Digital Medical |
Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Shandong Gold Mining |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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