Correlation Between Guangdong Jingyi and 5I5j Holding
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By analyzing existing cross correlation between Guangdong Jingyi Metal and 5I5j Holding Group, you can compare the effects of market volatilities on Guangdong Jingyi and 5I5j 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 5I5j Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and 5I5j Holding.
Diversification Opportunities for Guangdong Jingyi and 5I5j Holding
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and 5I5j is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and 5I5j Holding Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 5I5j Holding Group 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 5I5j Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 5I5j Holding Group has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and 5I5j Holding go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and 5I5j Holding
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.06 times more return on investment than 5I5j Holding. However, Guangdong Jingyi is 1.06 times more volatile than 5I5j Holding Group. It trades about 0.08 of its potential returns per unit of risk. 5I5j Holding Group is currently generating about -0.14 per unit of risk. If you would invest 697.00 in Guangdong Jingyi Metal on October 28, 2024 and sell it today you would earn a total of 26.00 from holding Guangdong Jingyi Metal or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. 5I5j Holding Group
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| 5I5j Holding Group |
Guangdong Jingyi and 5I5j Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and 5I5j Holding
The main advantage of trading using opposite Guangdong Jingyi and 5I5j Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, 5I5j 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 5I5j Holding will offset losses from the drop in 5I5j Holding's long position.| Guangdong Jingyi vs. Xiamen Bank Co | Guangdong Jingyi vs. Time Publishing and | Guangdong Jingyi vs. Zhejiang Publishing Media | Guangdong Jingyi vs. COL Digital Publishing |
| 5I5j Holding vs. China Aluminum International | 5I5j Holding vs. Shenzhen Bioeasy Biotechnology | 5I5j Holding vs. Guangdong Jingyi Metal | 5I5j Holding vs. CITIC Metal 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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