Correlation Between Guangdong Jingyi and Taiji Computer
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Taiji Computer Corp, you can compare the effects of market volatilities on Guangdong Jingyi and Taiji Computer 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 Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Taiji Computer.
Diversification Opportunities for Guangdong Jingyi and Taiji Computer
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Taiji is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp 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 Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Taiji Computer go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Taiji Computer
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.14 times more return on investment than Taiji Computer. However, Guangdong Jingyi is 1.14 times more volatile than Taiji Computer Corp. It trades about -0.05 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.15 per unit of risk. If you would invest 720.00 in Guangdong Jingyi Metal on September 26, 2024 and sell it today you would lose (24.00) from holding Guangdong Jingyi Metal or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Taiji Computer Corp
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Taiji Computer Corp |
Guangdong Jingyi and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Taiji Computer
The main advantage of trading using opposite Guangdong Jingyi and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Guangdong Jingyi vs. Guangzhou Jinyi Media | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Dook Media Group | Guangdong Jingyi vs. GRIPM Advanced Materials |
| Taiji Computer vs. Kweichow Moutai Co | Taiji Computer vs. Shenzhen Mindray Bio Medical | Taiji Computer vs. Jiangsu Pacific Quartz | Taiji Computer vs. G bits Network Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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