Correlation Between Guangdong Jingyi and GRG Banking
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and GRG Banking Equipment, you can compare the effects of market volatilities on Guangdong Jingyi and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and GRG Banking.
Diversification Opportunities for Guangdong Jingyi and GRG Banking
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and GRG is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and GRG Banking go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and GRG Banking
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to under-perform the GRG Banking. In addition to that, Guangdong Jingyi is 1.14 times more volatile than GRG Banking Equipment. It trades about -0.04 of its total potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.01 per unit of volatility. If you would invest 1,178 in GRG Banking Equipment on October 12, 2024 and sell it today you would lose (96.00) from holding GRG Banking Equipment or give up 8.15% 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. GRG Banking Equipment
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| GRG Banking Equipment |
Guangdong Jingyi and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and GRG Banking
The main advantage of trading using opposite Guangdong Jingyi and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking'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 |
| GRG Banking vs. Zhejiang Yongjin Metal | GRG Banking vs. Shandong Hongchuang Aluminum | GRG Banking vs. Eyebright Medical Technology | GRG Banking vs. CITIC Metal 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |