Correlation Between Guangdong Jingyi and Lushang Property
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Lushang Property Co, you can compare the effects of market volatilities on Guangdong Jingyi and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Lushang Property.
Diversification Opportunities for Guangdong Jingyi and Lushang Property
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Lushang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Lushang Property go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Lushang Property
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.91 times more return on investment than Lushang Property. However, Guangdong Jingyi Metal is 1.1 times less risky than Lushang Property. It trades about 0.28 of its potential returns per unit of risk. Lushang Property Co is currently generating about 0.02 per unit of risk. If you would invest 707.00 in Guangdong Jingyi Metal on September 13, 2024 and sell it today you would earn a total of 66.00 from holding Guangdong Jingyi Metal or generate 9.34% 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. Lushang Property Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Lushang Property |
Guangdong Jingyi and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Lushang Property
The main advantage of trading using opposite Guangdong Jingyi and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining | Guangdong Jingyi vs. Inner Mongolia BaoTou | Guangdong Jingyi vs. Jiangxi Ganfeng Lithium |
| Lushang Property vs. Wuhan Yangtze Communication | Lushang Property vs. Xinjiang Communications Construction | Lushang Property vs. Shenzhen Kexin Communication | Lushang Property vs. Guangdong Jingyi Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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