Correlation Between Hengli Industrial and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hengli Industrial Development and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Hengli Industrial and Guangdong Jingyi 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 Hengli Industrial with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Guangdong Jingyi.
Diversification Opportunities for Hengli Industrial and Guangdong Jingyi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengli and Guangdong is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Hengli Industrial and Guangdong Jingyi
Assuming the 90 days trading horizon Hengli Industrial Development is expected to under-perform the Guangdong Jingyi. In addition to that, Hengli Industrial is 1.33 times more volatile than Guangdong Jingyi Metal. It trades about -0.03 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.04 per unit of volatility. If you would invest 845.00 in Guangdong Jingyi Metal on October 12, 2024 and sell it today you would lose (202.00) from holding Guangdong Jingyi Metal or give up 23.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Hengli Industrial |
| Guangdong Jingyi Metal |
Hengli Industrial and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Guangdong Jingyi
The main advantage of trading using opposite Hengli Industrial and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Guangdong Jingyi 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 Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Hengli Industrial vs. Tsingtao Brewery Co | Hengli Industrial vs. Dawning Information Industry | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Unisplendour Corp |
| Guangdong Jingyi vs. Heren Health Co | Guangdong Jingyi vs. Jiugui Liquor Co | Guangdong Jingyi vs. Hangzhou Minsheng Healthcare | Guangdong Jingyi vs. Shandong Sinoglory Health |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |