Correlation Between Guangzhou Dongfang and Jiangsu Xinning
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Dongfang Hotel and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Guangzhou Dongfang and Jiangsu Xinning 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 Dongfang with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and Jiangsu Xinning.
Diversification Opportunities for Guangzhou Dongfang and Jiangsu Xinning
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Jiangsu is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and Guangzhou Dongfang 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 Dongfang Hotel are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and Jiangsu Xinning
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.1 times more return on investment than Jiangsu Xinning. However, Guangzhou Dongfang is 1.1 times more volatile than Jiangsu Xinning Modern. It trades about -0.18 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about -0.55 per unit of risk. If you would invest 1,017 in Guangzhou Dongfang Hotel on October 9, 2024 and sell it today you would lose (115.00) from holding Guangzhou Dongfang Hotel or give up 11.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| Jiangsu Xinning Modern |
Guangzhou Dongfang and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and Jiangsu Xinning
The main advantage of trading using opposite Guangzhou Dongfang and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, Jiangsu Xinning 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 Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. Kweichow Moutai Co | Guangzhou Dongfang vs. Agricultural Bank of | Guangzhou Dongfang vs. China Mobile Limited |
| Jiangsu Xinning vs. Hua Xia Bank | Jiangsu Xinning vs. Panda Financial Holding | Jiangsu Xinning vs. Sanbo Hospital Management | Jiangsu Xinning vs. Unisplendour Corp |
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.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |