Correlation Between Guangdong Jingyi and Shaanxi Meineng
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Guangdong Jingyi and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Shaanxi Meineng.
Diversification Opportunities for Guangdong Jingyi and Shaanxi Meineng
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Shaanxi is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Shaanxi Meineng
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.4 times more return on investment than Shaanxi Meineng. However, Guangdong Jingyi is 1.4 times more volatile than Shaanxi Meineng Clean. It trades about 0.26 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.06 per unit of risk. If you would invest 646.00 in Guangdong Jingyi Metal on November 3, 2024 and sell it today you would earn a total of 83.00 from holding Guangdong Jingyi Metal or generate 12.85% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Shaanxi Meineng Clean |
Guangdong Jingyi and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Shaanxi Meineng
The main advantage of trading using opposite Guangdong Jingyi and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Guangdong Jingyi vs. Allmed Medical Products | Guangdong Jingyi vs. Hengkang Medical Group | Guangdong Jingyi vs. Touchstone International Medical | Guangdong Jingyi vs. Chengtun Mining Group |
| Shaanxi Meineng vs. Bomesc Offshore Engineering | Shaanxi Meineng vs. Anhui Huaheng Biotechnology | Shaanxi Meineng vs. Duzhe Publishing Media | Shaanxi Meineng vs. Sichuan Hebang Biotechnology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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