Correlation Between Guangdong Jingyi and Zhuzhou Feilu
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Zhuzhou Feilu High Tech, you can compare the effects of market volatilities on Guangdong Jingyi and Zhuzhou Feilu 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 Zhuzhou Feilu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Zhuzhou Feilu.
Diversification Opportunities for Guangdong Jingyi and Zhuzhou Feilu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Zhuzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Zhuzhou Feilu High Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Feilu High 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 Zhuzhou Feilu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Feilu High has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Zhuzhou Feilu go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Zhuzhou Feilu
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.93 times more return on investment than Zhuzhou Feilu. However, Guangdong Jingyi Metal is 1.08 times less risky than Zhuzhou Feilu. It trades about 0.02 of its potential returns per unit of risk. Zhuzhou Feilu High Tech is currently generating about 0.01 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Zhuzhou Feilu High Tech
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Zhuzhou Feilu High |
Guangdong Jingyi and Zhuzhou Feilu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Zhuzhou Feilu
The main advantage of trading using opposite Guangdong Jingyi and Zhuzhou Feilu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Zhuzhou Feilu 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 Zhuzhou Feilu will offset losses from the drop in Zhuzhou Feilu'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 |
| Zhuzhou Feilu vs. Sinomach Automobile Co | Zhuzhou Feilu vs. Ningbo Fangzheng Automobile | Zhuzhou Feilu vs. Guangdong Jingyi Metal | Zhuzhou Feilu vs. Qinghaihuading Industrial Co |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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