Correlation Between Zhejiang Qianjiang and Jiangsu GDK
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Zhejiang Qianjiang 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 Zhejiang Qianjiang with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Jiangsu GDK.
Diversification Opportunities for Zhejiang Qianjiang and Jiangsu GDK
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zhejiang and Jiangsu is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Jiangsu GDK
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to under-perform the Jiangsu GDK. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Qianjiang Motorcycle is 1.27 times less risky than Jiangsu GDK. The stock trades about -0.22 of its potential returns per unit of risk. The Jiangsu GDK Biotechnology is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,211 in Jiangsu GDK Biotechnology on November 29, 2024 and sell it today you would earn a total of 52.00 from holding Jiangsu GDK Biotechnology or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Zhejiang Qianjiang |
| Jiangsu GDK Biotechnology |
Zhejiang Qianjiang and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and Jiangsu GDK
The main advantage of trading using opposite Zhejiang Qianjiang and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang 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.| Zhejiang Qianjiang vs. Guangzhou Restaurants Group | Zhejiang Qianjiang vs. Innovative Medical Management | Zhejiang Qianjiang vs. Hangzhou Pinming Software | Zhejiang Qianjiang vs. Linkage Software Co |
| Jiangsu GDK vs. Kingclean Electric Co | Jiangsu GDK vs. Invengo Information Technology | Jiangsu GDK vs. Xizi Clean Energy | Jiangsu GDK vs. Talkweb Information System |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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