Correlation Between Guangdong Jingyi and Uroica Mining
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Uroica Mining Safety, you can compare the effects of market volatilities on Guangdong Jingyi and Uroica Mining 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 Uroica Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Uroica Mining.
Diversification Opportunities for Guangdong Jingyi and Uroica Mining
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Uroica is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Uroica Mining Safety in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uroica Mining Safety 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 Uroica Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uroica Mining Safety has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Uroica Mining go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Uroica Mining
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.83 times more return on investment than Uroica Mining. However, Guangdong Jingyi Metal is 1.21 times less risky than Uroica Mining. It trades about 0.49 of its potential returns per unit of risk. Uroica Mining Safety is currently generating about 0.16 per unit of risk. If you would invest 608.00 in Guangdong Jingyi Metal on November 4, 2024 and sell it today you would earn a total of 121.00 from holding Guangdong Jingyi Metal or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Uroica Mining Safety
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Uroica Mining Safety |
Guangdong Jingyi and Uroica Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Uroica Mining
The main advantage of trading using opposite Guangdong Jingyi and Uroica Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Uroica Mining 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 Uroica Mining will offset losses from the drop in Uroica Mining's long position.| Guangdong Jingyi vs. Jiahe Foods Industry | Guangdong Jingyi vs. Liaoning Dingjide Petrochemical | Guangdong Jingyi vs. Shandong Rike Chemical | Guangdong Jingyi vs. Guilin Seamild Foods |
| Uroica Mining vs. Xinjiang Qingsong Building | Uroica Mining vs. Zhejiang Kingland Pipeline | Uroica Mining vs. Anhui Transport Consulting | Uroica Mining vs. Highbroad Advanced Material |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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