Correlation Between Tongling Nonferrous and Jiangsu GDK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongling Nonferrous Metals and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Tongling Nonferrous 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 Tongling Nonferrous with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and Jiangsu GDK.
Diversification Opportunities for Tongling Nonferrous and Jiangsu GDK
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongling and Jiangsu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals 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 Tongling Nonferrous 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 Tongling Nonferrous Metals 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 Tongling Nonferrous i.e., Tongling Nonferrous and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and Jiangsu GDK
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.58 times more return on investment than Jiangsu GDK. However, Tongling Nonferrous Metals is 1.73 times less risky than Jiangsu GDK. It trades about 0.03 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 306.00 in Tongling Nonferrous Metals on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Tongling Nonferrous Metals or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Tongling Nonferrous |
| Jiangsu GDK Biotechnology |
Tongling Nonferrous and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and Jiangsu GDK
The main advantage of trading using opposite Tongling Nonferrous and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous 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.| Tongling Nonferrous vs. Zhengzhou Coal Mining | Tongling Nonferrous vs. JCHX Mining Management | Tongling Nonferrous vs. Xinjiang Baodi Mining | Tongling Nonferrous vs. Sanbo Hospital Management |
| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |