Correlation Between GRG Banking and Jiangnan Mould
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By analyzing existing cross correlation between GRG Banking Equipment and Jiangnan Mould Plastic, you can compare the effects of market volatilities on GRG Banking and Jiangnan Mould 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 GRG Banking with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Jiangnan Mould.
Diversification Opportunities for GRG Banking and Jiangnan Mould
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GRG and Jiangnan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of GRG Banking i.e., GRG Banking and Jiangnan Mould go up and down completely randomly.
Pair Corralation between GRG Banking and Jiangnan Mould
Assuming the 90 days trading horizon GRG Banking is expected to generate 1.32 times less return on investment than Jiangnan Mould. But when comparing it to its historical volatility, GRG Banking Equipment is 1.05 times less risky than Jiangnan Mould. It trades about 0.08 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 560.00 in Jiangnan Mould Plastic on September 1, 2024 and sell it today you would earn a total of 185.00 from holding Jiangnan Mould Plastic or generate 33.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
GRG Banking Equipment vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| GRG Banking Equipment |
| Jiangnan Mould Plastic |
GRG Banking and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Jiangnan Mould
The main advantage of trading using opposite GRG Banking and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| GRG Banking vs. Semiconductor Manufacturing Intl | GRG Banking vs. Anhui Conch Cement | GRG Banking vs. Sungrow Power Supply | GRG Banking vs. Shenzhen New Nanshan |
| Jiangnan Mould vs. Sportsoul Co Ltd | Jiangnan Mould vs. Jiangsu Broadcasting Cable | Jiangnan Mould vs. Shanghai Xinhua Media | Jiangnan Mould vs. Shuhua Sports 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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