Correlation Between Guangdong Jingyi and Qinghaihuading Industrial
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Qinghaihuading Industrial Co, you can compare the effects of market volatilities on Guangdong Jingyi and Qinghaihuading Industrial 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 Qinghaihuading Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Qinghaihuading Industrial.
Diversification Opportunities for Guangdong Jingyi and Qinghaihuading Industrial
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Qinghaihuading is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Qinghaihuading Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinghaihuading Industrial 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 Qinghaihuading Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinghaihuading Industrial has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Qinghaihuading Industrial go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Qinghaihuading Industrial
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 5.41 times less return on investment than Qinghaihuading Industrial. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.2 times less risky than Qinghaihuading Industrial. It trades about 0.0 of its potential returns per unit of risk. Qinghaihuading Industrial Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Qinghaihuading Industrial Co on October 7, 2024 and sell it today you would lose (67.00) from holding Qinghaihuading Industrial Co or give up 16.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Qinghaihuading Industrial Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Qinghaihuading Industrial |
Guangdong Jingyi and Qinghaihuading Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Qinghaihuading Industrial
The main advantage of trading using opposite Guangdong Jingyi and Qinghaihuading Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Qinghaihuading Industrial 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 Qinghaihuading Industrial will offset losses from the drop in Qinghaihuading Industrial'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 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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