Correlation Between Guangdong Jingyi and Hangzhou Gisway
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Hangzhou Gisway Information, you can compare the effects of market volatilities on Guangdong Jingyi and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Hangzhou Gisway.
Diversification Opportunities for Guangdong Jingyi and Hangzhou Gisway
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Hangzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Hangzhou Gisway
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.61 times more return on investment than Hangzhou Gisway. However, Guangdong Jingyi Metal is 1.65 times less risky than Hangzhou Gisway. It trades about 0.22 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.08 per unit of risk. If you would invest 718.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Guangdong Jingyi Metal or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Hangzhou Gisway Information
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Hangzhou Gisway Info |
Guangdong Jingyi and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Hangzhou Gisway
The main advantage of trading using opposite Guangdong Jingyi and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway'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 |
| Hangzhou Gisway vs. Gansu Jiu Steel | Hangzhou Gisway vs. Shandong Mining Machinery | Hangzhou Gisway vs. Aba Chemicals Corp | Hangzhou Gisway vs. BlueFocus Communication Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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