Correlation Between Weichai Heavy and Jiangsu GDK
Specify exactly 2 symbols:
By analyzing existing cross correlation between Weichai Heavy Machinery and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Weichai Heavy 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 Weichai Heavy with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weichai Heavy and Jiangsu GDK.
Diversification Opportunities for Weichai Heavy and Jiangsu GDK
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weichai and Jiangsu is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Weichai Heavy Machinery 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 Weichai Heavy 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 Weichai Heavy Machinery 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 Weichai Heavy i.e., Weichai Heavy and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Weichai Heavy and Jiangsu GDK
Assuming the 90 days trading horizon Weichai Heavy Machinery is expected to generate 2.2 times more return on investment than Jiangsu GDK. However, Weichai Heavy is 2.2 times more volatile than Jiangsu GDK Biotechnology. It trades about 0.15 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 1,748 in Weichai Heavy Machinery on November 3, 2024 and sell it today you would earn a total of 246.00 from holding Weichai Heavy Machinery or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Weichai Heavy Machinery vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Weichai Heavy Machinery |
| Jiangsu GDK Biotechnology |
Weichai Heavy and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weichai Heavy and Jiangsu GDK
The main advantage of trading using opposite Weichai Heavy and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weichai Heavy 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.| Weichai Heavy vs. Shaanxi Meineng Clean | Weichai Heavy vs. Shaanxi Broadcast TV | Weichai Heavy vs. Xinjiang Beixin RoadBridge | Weichai Heavy vs. Zhongshan Broad Ocean Motor |
| Jiangsu GDK vs. PetroChina Co Ltd | Jiangsu GDK vs. China Railway Construction | Jiangsu GDK vs. China Mobile Limited | Jiangsu GDK vs. Industrial and Commercial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |