Correlation Between Guangdong Jingyi and Marssenger Kitchenware
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Guangdong Jingyi and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Marssenger Kitchenware.
Diversification Opportunities for Guangdong Jingyi and Marssenger Kitchenware
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Marssenger is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Marssenger Kitchenware
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.83 times more return on investment than Marssenger Kitchenware. However, Guangdong Jingyi Metal is 1.2 times less risky than Marssenger Kitchenware. It trades about 0.02 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.01 per unit of risk. If you would invest 691.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Jingyi Metal or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Marssenger Kitchenware |
Guangdong Jingyi and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Marssenger Kitchenware
The main advantage of trading using opposite Guangdong Jingyi and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
| Marssenger Kitchenware vs. Lutian Machinery Co | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. Bank of China | Marssenger Kitchenware vs. Gansu Jiu Steel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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