Correlation Between Guangdong Jingyi and Do-Fluoride Chemicals
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Guangdong Jingyi and Do-Fluoride Chemicals 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 Do-Fluoride Chemicals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Do-Fluoride Chemicals.
Diversification Opportunities for Guangdong Jingyi and Do-Fluoride Chemicals
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Do-Fluoride is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do-Fluoride Chemicals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Do-Fluoride Chemicals go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Do-Fluoride Chemicals
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.87 times more return on investment than Do-Fluoride Chemicals. However, Guangdong Jingyi Metal is 1.15 times less risky than Do-Fluoride Chemicals. It trades about 0.09 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about 0.02 per unit of risk. If you would invest 583.00 in Guangdong Jingyi Metal on September 1, 2024 and sell it today you would earn a total of 153.00 from holding Guangdong Jingyi Metal or generate 26.24% 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. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Do Fluoride Chemicals |
Guangdong Jingyi and Do-Fluoride Chemicals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Do-Fluoride Chemicals
The main advantage of trading using opposite Guangdong Jingyi and Do-Fluoride Chemicals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Do-Fluoride Chemicals 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 Do-Fluoride Chemicals will offset losses from the drop in Do-Fluoride Chemicals' 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 |
| Do-Fluoride Chemicals vs. Zijin Mining Group | Do-Fluoride Chemicals vs. Wanhua Chemical Group | Do-Fluoride Chemicals vs. Baoshan Iron Steel | Do-Fluoride Chemicals vs. Shandong Gold Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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