Correlation Between Guangdong Jingyi and Kidswant Children
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Kidswant Children Products, you can compare the effects of market volatilities on Guangdong Jingyi and Kidswant Children 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 Kidswant Children. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Kidswant Children.
Diversification Opportunities for Guangdong Jingyi and Kidswant Children
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Kidswant is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Kidswant Children Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kidswant Children 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 Kidswant Children. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kidswant Children has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Kidswant Children go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Kidswant Children
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to under-perform the Kidswant Children. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Jingyi Metal is 1.25 times less risky than Kidswant Children. The stock trades about 0.0 of its potential returns per unit of risk. The Kidswant Children Products is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,283 in Kidswant Children Products on October 14, 2024 and sell it today you would lose (153.00) from holding Kidswant Children Products or give up 11.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Kidswant Children Products
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Kidswant Children |
Guangdong Jingyi and Kidswant Children Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Kidswant Children
The main advantage of trading using opposite Guangdong Jingyi and Kidswant Children positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Kidswant Children 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 Kidswant Children will offset losses from the drop in Kidswant Children's long position.| Guangdong Jingyi vs. Nanjing Putian Telecommunications | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Omnijoi Media Corp | Guangdong Jingyi vs. Songz Automobile Air |
| Kidswant Children vs. Tibet Huayu Mining | Kidswant Children vs. Guangdong Jingyi Metal | Kidswant Children vs. Zhengzhou Coal Mining | Kidswant Children vs. CareRay Digital Medical |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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