Correlation Between New China and Guangdong Tianhe
Specify exactly 2 symbols:
By analyzing existing cross correlation between New China Life and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on New China 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 New China with a short position of Guangdong Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of New China and Guangdong Tianhe.
Diversification Opportunities for New China and Guangdong Tianhe
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between New and Guangdong is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding New China Life 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 New China 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 New China Life 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 New China i.e., New China and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between New China and Guangdong Tianhe
Assuming the 90 days trading horizon New China Life is expected to generate 0.95 times more return on investment than Guangdong Tianhe. However, New China Life is 1.06 times less risky than Guangdong Tianhe. It trades about 0.2 of its potential returns per unit of risk. Guangdong Tianhe Agricultural is currently generating about 0.18 per unit of risk. If you would invest 3,324 in New China Life on September 23, 2024 and sell it today you would earn a total of 1,640 from holding New China Life or generate 49.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
New China Life vs. Guangdong Tianhe Agricultural
Performance |
Timeline |
New China Life |
Guangdong Tianhe Agr |
New China and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New China and Guangdong Tianhe
The main advantage of trading using opposite New China and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New China 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.New China vs. Kweichow Moutai Co | New China vs. Shenzhen Mindray Bio Medical | New China vs. Jiangsu Pacific Quartz | New China vs. G bits Network Technology |
Guangdong Tianhe vs. Industrial and Commercial | Guangdong Tianhe vs. Kweichow Moutai Co | Guangdong Tianhe vs. Agricultural Bank of | Guangdong Tianhe vs. China Mobile Limited |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |