Correlation Between Guangdong Jingyi and Shenzhen Aisidi
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Guangdong Jingyi and Shenzhen Aisidi 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 Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Shenzhen Aisidi.
Diversification Opportunities for Guangdong Jingyi and Shenzhen Aisidi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Shenzhen Aisidi
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.4 times more return on investment than Shenzhen Aisidi. However, Guangdong Jingyi Metal is 2.49 times less risky than Shenzhen Aisidi. It trades about 0.28 of its potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about 0.0 per unit of risk. If you would invest 707.00 in Guangdong Jingyi Metal on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Guangdong Jingyi Metal or generate 9.34% 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. Shenzhen Aisidi Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Shenzhen Aisidi |
Guangdong Jingyi and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Shenzhen Aisidi
The main advantage of trading using opposite Guangdong Jingyi and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Shenzhen Aisidi 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 Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining | Guangdong Jingyi vs. Inner Mongolia BaoTou | Guangdong Jingyi vs. Jiangxi Ganfeng Lithium |
| Shenzhen Aisidi vs. Railway Signal Communication | Shenzhen Aisidi vs. Guilin Seamild Foods | Shenzhen Aisidi vs. Shanghai Ziyan Foods | Shenzhen Aisidi vs. Youyou Foods 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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