Correlation Between Shaanxi Energy and Jiangsu GDK
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By analyzing existing cross correlation between Shaanxi Energy Investment and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Shaanxi Energy 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 Shaanxi Energy with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Jiangsu GDK.
Diversification Opportunities for Shaanxi Energy and Jiangsu GDK
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Jiangsu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy Investment 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 Shaanxi Energy 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 Shaanxi Energy Investment 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 Shaanxi Energy i.e., Shaanxi Energy and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Jiangsu GDK
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to generate 0.48 times more return on investment than Jiangsu GDK. However, Shaanxi Energy Investment is 2.08 times less risky than Jiangsu GDK. It trades about 0.01 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 979.00 in Shaanxi Energy Investment on September 12, 2024 and sell it today you would lose (4.00) from holding Shaanxi Energy Investment or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Jiangsu GDK Biotechnology |
Shaanxi Energy and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Jiangsu GDK
The main advantage of trading using opposite Shaanxi Energy and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy 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.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Gansu Jiu Steel | Shaanxi Energy vs. Shandong Mining Machinery | Shaanxi Energy vs. Aba Chemicals Corp |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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