Correlation Between Guangdong Jingyi and Shenzhen Coship
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Guangdong Jingyi and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Shenzhen Coship.
Diversification Opportunities for Guangdong Jingyi and Shenzhen Coship
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Shenzhen is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Shenzhen Coship
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.88 times more return on investment than Shenzhen Coship. However, Guangdong Jingyi Metal is 1.14 times less risky than Shenzhen Coship. It trades about 0.08 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about -0.12 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Shenzhen Coship Elec |
Guangdong Jingyi and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Shenzhen Coship
The main advantage of trading using opposite Guangdong Jingyi and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship'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 |
| Shenzhen Coship vs. Zhongyin Babi Food | Shenzhen Coship vs. Hainan Haiqi Transportation | Shenzhen Coship vs. Shenzhen Urban Transport | Shenzhen Coship vs. Dazhong Transportation Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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