Correlation Between Guangdong Jingyi and Hengli Industrial
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Hengli Industrial Development, you can compare the effects of market volatilities on Guangdong Jingyi and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Hengli Industrial.
Diversification Opportunities for Guangdong Jingyi and Hengli Industrial
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Hengli is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Hengli Industrial go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Hengli Industrial
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.75 times more return on investment than Hengli Industrial. However, Guangdong Jingyi Metal is 1.33 times less risky than Hengli Industrial. It trades about -0.04 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.03 per unit of risk. If you would invest 845.00 in Guangdong Jingyi Metal on October 12, 2024 and sell it today you would lose (202.00) from holding Guangdong Jingyi Metal or give up 23.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Hengli Industrial Development
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Hengli Industrial |
Guangdong Jingyi and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Hengli Industrial
The main advantage of trading using opposite Guangdong Jingyi and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Guangdong Jingyi vs. Heren Health Co | Guangdong Jingyi vs. Jiugui Liquor Co | Guangdong Jingyi vs. Hangzhou Minsheng Healthcare | Guangdong Jingyi vs. Shandong Sinoglory Health |
| Hengli Industrial vs. Tsingtao Brewery Co | Hengli Industrial vs. Dawning Information Industry | Hengli Industrial vs. Wuhan Yangtze Communication | Hengli Industrial vs. Unisplendour Corp |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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