Correlation Between Guangdong Jingyi and Vanfund Urban
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Vanfund Urban Investment, you can compare the effects of market volatilities on Guangdong Jingyi and Vanfund Urban 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 Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Vanfund Urban.
Diversification Opportunities for Guangdong Jingyi and Vanfund Urban
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Vanfund is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment 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 Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Vanfund Urban go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Vanfund Urban
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.83 times more return on investment than Vanfund Urban. However, Guangdong Jingyi Metal is 1.2 times less risky than Vanfund Urban. It trades about 0.2 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.0 per unit of risk. If you would invest 660.00 in Guangdong Jingyi Metal on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Guangdong Jingyi Metal or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Vanfund Urban Investment
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Vanfund Urban Investment |
Guangdong Jingyi and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Vanfund Urban
The main advantage of trading using opposite Guangdong Jingyi and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining |
| Vanfund Urban vs. Cultural Investment Holdings | Vanfund Urban vs. Gome Telecom Equipment | Vanfund Urban vs. Bus Online Co | Vanfund Urban vs. Holitech Technology 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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