Correlation Between Guangdong Jingyi and Yunnan Xiyi
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Guangdong Jingyi and Yunnan Xiyi 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 Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Yunnan Xiyi.
Diversification Opportunities for Guangdong Jingyi and Yunnan Xiyi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Yunnan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial 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 Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Yunnan Xiyi
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.77 times more return on investment than Yunnan Xiyi. However, Guangdong Jingyi Metal is 1.3 times less risky than Yunnan Xiyi. It trades about 0.2 of its potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about 0.02 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. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Yunnan Xiyi Industrial |
Guangdong Jingyi and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Yunnan Xiyi
The main advantage of trading using opposite Guangdong Jingyi and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi'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 |
| Yunnan Xiyi vs. Jiangsu Broadcasting Cable | Yunnan Xiyi vs. Hainan Haiqi Transportation | Yunnan Xiyi vs. Southchip Semiconductor Technology | Yunnan Xiyi vs. Sichuan Fulin Transportation |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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