Correlation Between Guangdong Jingyi and Beijing Tiantan
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Beijing Tiantan Biological, you can compare the effects of market volatilities on Guangdong Jingyi and Beijing Tiantan 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 Beijing Tiantan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Beijing Tiantan.
Diversification Opportunities for Guangdong Jingyi and Beijing Tiantan
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Beijing is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Beijing Tiantan Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Tiantan Biol 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 Beijing Tiantan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Tiantan Biol has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Beijing Tiantan go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Beijing Tiantan
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.09 times more return on investment than Beijing Tiantan. However, Guangdong Jingyi is 1.09 times more volatile than Beijing Tiantan Biological. It trades about 0.49 of its potential returns per unit of risk. Beijing Tiantan Biological is currently generating about 0.15 per unit of risk. If you would invest 608.00 in Guangdong Jingyi Metal on November 4, 2024 and sell it today you would earn a total of 121.00 from holding Guangdong Jingyi Metal or generate 19.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Beijing Tiantan Biological
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Beijing Tiantan Biol |
Guangdong Jingyi and Beijing Tiantan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Beijing Tiantan
The main advantage of trading using opposite Guangdong Jingyi and Beijing Tiantan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Beijing Tiantan 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 Beijing Tiantan will offset losses from the drop in Beijing Tiantan's long position.| Guangdong Jingyi vs. Jiahe Foods Industry | Guangdong Jingyi vs. Liaoning Dingjide Petrochemical | Guangdong Jingyi vs. Shandong Rike Chemical | Guangdong Jingyi vs. Guilin Seamild Foods |
| Beijing Tiantan vs. Guizhou Chanhen Chemical | Beijing Tiantan vs. HeBei Jinniu Chemical | Beijing Tiantan vs. Hengli Petrochemical Co | Beijing Tiantan vs. Easyhome New Retail |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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