Correlation Between Guangdong Jingyi and Songcheng Performance
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Songcheng Performance Develop, you can compare the effects of market volatilities on Guangdong Jingyi and Songcheng Performance 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 Songcheng Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Songcheng Performance.
Diversification Opportunities for Guangdong Jingyi and Songcheng Performance
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Songcheng is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Songcheng Performance Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songcheng Performance 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 Songcheng Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songcheng Performance has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Songcheng Performance go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Songcheng Performance
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.16 times more return on investment than Songcheng Performance. However, Guangdong Jingyi is 1.16 times more volatile than Songcheng Performance Develop. It trades about 0.02 of its potential returns per unit of risk. Songcheng Performance Develop is currently generating about -0.03 per unit of risk. If you would invest 694.00 in Guangdong Jingyi Metal on September 3, 2024 and sell it today you would earn a total of 42.00 from holding Guangdong Jingyi Metal or generate 6.05% 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. Songcheng Performance Develop
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Songcheng Performance |
Guangdong Jingyi and Songcheng Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Songcheng Performance
The main advantage of trading using opposite Guangdong Jingyi and Songcheng Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Songcheng Performance 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 Songcheng Performance will offset losses from the drop in Songcheng Performance's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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