Correlation Between Guangdong Jingyi and SAIC
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By analyzing existing cross correlation between Guangdong Jingyi Metal and SAIC Motor Corp, you can compare the effects of market volatilities on Guangdong Jingyi and SAIC 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 SAIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and SAIC.
Diversification Opportunities for Guangdong Jingyi and SAIC
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and SAIC is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and SAIC Motor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIC Motor Corp 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 SAIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIC Motor Corp has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and SAIC go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and SAIC
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to under-perform the SAIC. In addition to that, Guangdong Jingyi is 1.46 times more volatile than SAIC Motor Corp. It trades about 0.0 of its total potential returns per unit of risk. SAIC Motor Corp is currently generating about 0.03 per unit of volatility. If you would invest 1,467 in SAIC Motor Corp on October 15, 2024 and sell it today you would earn a total of 296.00 from holding SAIC Motor Corp or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. SAIC Motor Corp
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| SAIC Motor Corp |
Guangdong Jingyi and SAIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and SAIC
The main advantage of trading using opposite Guangdong Jingyi and SAIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, SAIC 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 SAIC will offset losses from the drop in SAIC'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 |
| SAIC vs. Chengdu Kanghua Biological | SAIC vs. Beijing Wantai Biological | SAIC vs. Suzhou Novoprotein Scientific | SAIC vs. Aluminum Corp of |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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