Correlation Between Guangdong Jingyi and Zangge Holding
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Zangge Holding Co, you can compare the effects of market volatilities on Guangdong Jingyi and Zangge Holding 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 Guangdong Jingyi with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Zangge Holding.
Diversification Opportunities for Guangdong Jingyi and Zangge Holding
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Zangge is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Zangge Holding go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Zangge Holding
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to under-perform the Zangge Holding. In addition to that, Guangdong Jingyi is 1.68 times more volatile than Zangge Holding Co. It trades about -0.34 of its total potential returns per unit of risk. Zangge Holding Co is currently generating about 0.18 per unit of volatility. If you would invest 2,768 in Zangge Holding Co on October 14, 2024 and sell it today you would earn a total of 182.00 from holding Zangge Holding Co or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Zangge Holding Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Zangge Holding |
Guangdong Jingyi and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Zangge Holding
The main advantage of trading using opposite Guangdong Jingyi and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Guangdong Jingyi vs. Anhui Gujing Distillery | Guangdong Jingyi vs. Beijing HuaYuanYiTong Thermal | Guangdong Jingyi vs. Guocheng Mining Co | Guangdong Jingyi vs. Hainan Mining Co |
| Zangge Holding vs. Runjian Communication Co | Zangge Holding vs. Liaoning Dingjide Petrochemical | Zangge Holding vs. State Grid InformationCommunication | Zangge Holding vs. Miracll Chemicals 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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