Correlation Between Guangdong Jingyi and Lootom Telcovideo
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Lootom Telcovideo Network, you can compare the effects of market volatilities on Guangdong Jingyi and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Lootom Telcovideo.
Diversification Opportunities for Guangdong Jingyi and Lootom Telcovideo
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Lootom is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Lootom Telcovideo
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 1.2 times less return on investment than Lootom Telcovideo. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.11 times less risky than Lootom Telcovideo. It trades about 0.11 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 592.00 in Lootom Telcovideo Network on September 3, 2024 and sell it today you would earn a total of 250.00 from holding Lootom Telcovideo Network or generate 42.23% 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. Lootom Telcovideo Network
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Lootom Telcovideo Network |
Guangdong Jingyi and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Lootom Telcovideo
The main advantage of trading using opposite Guangdong Jingyi and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Hoshine Silicon Ind |
| Lootom Telcovideo vs. Agricultural Bank of | Lootom Telcovideo vs. China Construction Bank | Lootom Telcovideo vs. Postal Savings Bank | Lootom Telcovideo vs. Bank of Communications |
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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