Correlation Between Guangdong Jingyi and INKON Life
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By analyzing existing cross correlation between Guangdong Jingyi Metal and INKON Life Technology, you can compare the effects of market volatilities on Guangdong Jingyi and INKON Life 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 INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and INKON Life.
Diversification Opportunities for Guangdong Jingyi and INKON Life
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and INKON is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology 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 INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and INKON Life go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and INKON Life
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.34 times more return on investment than INKON Life. However, Guangdong Jingyi is 1.34 times more volatile than INKON Life Technology. It trades about -0.07 of its potential returns per unit of risk. INKON Life Technology is currently generating about -0.15 per unit of risk. If you would invest 701.00 in Guangdong Jingyi Metal on October 22, 2024 and sell it today you would lose (31.00) from holding Guangdong Jingyi Metal or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. INKON Life Technology
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| INKON Life Technology |
Guangdong Jingyi and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and INKON Life
The main advantage of trading using opposite Guangdong Jingyi and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Guangdong Jingyi vs. ROPEOK Technology Group | Guangdong Jingyi vs. Offshore Oil Engineering | Guangdong Jingyi vs. Hainan Airlines Co | Guangdong Jingyi vs. Jiangsu Financial Leasing |
| INKON Life vs. Success Electronics | INKON Life vs. Guangdong Jingyi Metal | INKON Life vs. Integrated Electronic Systems | INKON Life vs. YiDong Electronics Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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