Correlation Between Guangdong Jingyi and Beijing SPC
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Beijing SPC Environment, you can compare the effects of market volatilities on Guangdong Jingyi and Beijing SPC 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 Beijing SPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Beijing SPC.
Diversification Opportunities for Guangdong Jingyi and Beijing SPC
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Beijing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Beijing SPC Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing SPC Environment 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 Beijing SPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing SPC Environment has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Beijing SPC go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Beijing SPC
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.62 times more return on investment than Beijing SPC. However, Guangdong Jingyi is 1.62 times more volatile than Beijing SPC Environment. It trades about 0.01 of its potential returns per unit of risk. Beijing SPC Environment is currently generating about -0.01 per unit of risk. If you would invest 769.00 in Guangdong Jingyi Metal on September 4, 2024 and sell it today you would lose (19.00) from holding Guangdong Jingyi Metal or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Beijing SPC Environment
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Beijing SPC Environment |
Guangdong Jingyi and Beijing SPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Beijing SPC
The main advantage of trading using opposite Guangdong Jingyi and Beijing SPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Beijing SPC 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 Beijing SPC will offset losses from the drop in Beijing SPC's long position.| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
| Beijing SPC vs. Agricultural Bank of | Beijing SPC vs. Industrial and Commercial | Beijing SPC vs. Bank of China | Beijing SPC vs. China Construction Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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