Correlation Between Guangdong Jingyi and Gan Yuan
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Gan Yuan Foods, you can compare the effects of market volatilities on Guangdong Jingyi and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Gan Yuan.
Diversification Opportunities for Guangdong Jingyi and Gan Yuan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Gan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Gan Yuan go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Gan Yuan
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 1.33 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.38 times less risky than Gan Yuan. It trades about 0.33 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 7,366 in Gan Yuan Foods on September 14, 2024 and sell it today you would earn a total of 1,144 from holding Gan Yuan Foods or generate 15.53% 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. Gan Yuan Foods
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Gan Yuan Foods |
Guangdong Jingyi and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Gan Yuan
The main advantage of trading using opposite Guangdong Jingyi and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
| Gan Yuan vs. Jilin Jlu Communication | Gan Yuan vs. Sunwave Communications Co | Gan Yuan vs. Guocheng Mining Co | Gan Yuan vs. Allwin Telecommunication 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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