Correlation Between Shenzhen Centralcon and Jiangsu GDK
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Shenzhen Centralcon and Jiangsu GDK 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 Shenzhen Centralcon with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Jiangsu GDK.
Diversification Opportunities for Shenzhen Centralcon and Jiangsu GDK
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Jiangsu GDK
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 0.8 times more return on investment than Jiangsu GDK. However, Shenzhen Centralcon Investment is 1.26 times less risky than Jiangsu GDK. It trades about 0.06 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.05 per unit of risk. If you would invest 444.00 in Shenzhen Centralcon Investment on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Shenzhen Centralcon Investment or generate 21.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Shenzhen Centralcon |
| Jiangsu GDK Biotechnology |
Shenzhen Centralcon and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Jiangsu GDK
The main advantage of trading using opposite Shenzhen Centralcon and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Shenzhen Centralcon vs. Industrial and Commercial | Shenzhen Centralcon vs. China Construction Bank | Shenzhen Centralcon vs. Bank of China | Shenzhen Centralcon vs. Agricultural Bank of |
| Jiangsu GDK vs. Chengdu Kanghua Biological | Jiangsu GDK vs. Beijing Wantai Biological | Jiangsu GDK vs. Suzhou Novoprotein Scientific | Jiangsu GDK vs. Aluminum Corp of |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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