Correlation Between Hunan Investment and Jiangsu GDK
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By analyzing existing cross correlation between Hunan Investment Group and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Jiangsu GDK.
Diversification Opportunities for Hunan Investment and Jiangsu GDK
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Hunan Investment and Jiangsu GDK
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.67 times more return on investment than Jiangsu GDK. However, Hunan Investment Group is 1.48 times less risky than Jiangsu GDK. It trades about 0.05 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.04 per unit of risk. If you would invest 418.00 in Hunan Investment Group on December 2, 2024 and sell it today you would earn a total of 97.00 from holding Hunan Investment Group or generate 23.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Hunan Investment |
| Jiangsu GDK Biotechnology |
Hunan Investment and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Jiangsu GDK
The main advantage of trading using opposite Hunan Investment and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. Jinling Hotel Corp | Hunan Investment vs. Guangdong Jingyi Metal | Hunan Investment vs. Lander Sports Development | Hunan Investment vs. Chinese Universe Publishing |
| Jiangsu GDK vs. Chengdu Spaceon Electronics | Jiangsu GDK vs. Biwin Storage Technology | Jiangsu GDK vs. YLZ Information Tech | Jiangsu GDK vs. Shenzhen SDG Information |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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