Correlation Between Guangdong Jingyi and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Guangdong Jingyi and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Jiangsu Jinling.
Diversification Opportunities for Guangdong Jingyi and Jiangsu Jinling
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jiangsu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Jiangsu Jinling
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.7 times more return on investment than Jiangsu Jinling. However, Guangdong Jingyi Metal is 1.43 times less risky than Jiangsu Jinling. It trades about -0.36 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.31 per unit of risk. If you would invest 795.00 in Guangdong Jingyi Metal on October 15, 2024 and sell it today you would lose (169.00) from holding Guangdong Jingyi Metal or give up 21.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Jiangsu Jinling Sports |
Guangdong Jingyi and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Jiangsu Jinling
The main advantage of trading using opposite Guangdong Jingyi and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
| Jiangsu Jinling vs. Jointo Energy Investment | Jiangsu Jinling vs. Zoje Resources Investment | Jiangsu Jinling vs. RoadMain T Co | Jiangsu Jinling vs. Chahua Modern Housewares |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |