Correlation Between Guangdong Jingyi and HanS Laser
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By analyzing existing cross correlation between Guangdong Jingyi Metal and HanS Laser Tech, you can compare the effects of market volatilities on Guangdong Jingyi and HanS Laser 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 HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and HanS Laser.
Diversification Opportunities for Guangdong Jingyi and HanS Laser
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and HanS is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech 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 HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and HanS Laser go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and HanS Laser
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.46 times more return on investment than HanS Laser. However, Guangdong Jingyi is 1.46 times more volatile than HanS Laser Tech. It trades about 0.45 of its potential returns per unit of risk. HanS Laser Tech is currently generating about 0.35 per unit of risk. If you would invest 620.00 in Guangdong Jingyi Metal on November 7, 2024 and sell it today you would earn a total of 109.00 from holding Guangdong Jingyi Metal or generate 17.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. HanS Laser Tech
Performance |
| Timeline |
| Guangdong Jingyi Metal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| HanS Laser Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Guangdong Jingyi and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and HanS Laser
The main advantage of trading using opposite Guangdong Jingyi and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.The idea behind Guangdong Jingyi Metal and HanS Laser Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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