Correlation Between GRG Banking and Jilin OLED
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By analyzing existing cross correlation between GRG Banking Equipment and Jilin OLED Material, you can compare the effects of market volatilities on GRG Banking and Jilin OLED 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 Jilin OLED. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Jilin OLED.
Diversification Opportunities for GRG Banking and Jilin OLED
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Jilin is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Jilin OLED Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin OLED Material 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 Jilin OLED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin OLED Material has no effect on the direction of GRG Banking i.e., GRG Banking and Jilin OLED go up and down completely randomly.
Pair Corralation between GRG Banking and Jilin OLED
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.6 times more return on investment than Jilin OLED. However, GRG Banking Equipment is 1.66 times less risky than Jilin OLED. It trades about -0.45 of its potential returns per unit of risk. Jilin OLED Material is currently generating about -0.31 per unit of risk. If you would invest 1,300 in GRG Banking Equipment on October 12, 2024 and sell it today you would lose (218.00) from holding GRG Banking Equipment or give up 16.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Jilin OLED Material
Performance |
| Timeline |
| GRG Banking Equipment |
| Jilin OLED Material |
GRG Banking and Jilin OLED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Jilin OLED
The main advantage of trading using opposite GRG Banking and Jilin OLED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Jilin OLED 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 Jilin OLED will offset losses from the drop in Jilin OLED's long position.| GRG Banking vs. Zhejiang Yongjin Metal | GRG Banking vs. Shandong Hongchuang Aluminum | GRG Banking vs. Eyebright Medical Technology | GRG Banking vs. CITIC Metal Co |
| Jilin OLED vs. Shenwu Energy Saving | Jilin OLED vs. GRG Banking Equipment | Jilin OLED vs. Hengli Industrial Development | Jilin OLED vs. Western Metal Materials |
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.
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