Correlation Between Guangdong Jingyi and Tonghua Grape
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Tonghua Grape Wine, you can compare the effects of market volatilities on Guangdong Jingyi and Tonghua Grape 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 Tonghua Grape. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Tonghua Grape.
Diversification Opportunities for Guangdong Jingyi and Tonghua Grape
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Tonghua is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Tonghua Grape Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonghua Grape Wine 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 Tonghua Grape. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonghua Grape Wine has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Tonghua Grape go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Tonghua Grape
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.14 times more return on investment than Tonghua Grape. However, Guangdong Jingyi is 1.14 times more volatile than Tonghua Grape Wine. It trades about 0.0 of its potential returns per unit of risk. Tonghua Grape Wine is currently generating about -0.03 per unit of risk. If you would invest 760.00 in Guangdong Jingyi Metal on October 16, 2024 and sell it today you would lose (118.00) from holding Guangdong Jingyi Metal or give up 15.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Tonghua Grape Wine
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Tonghua Grape Wine |
Guangdong Jingyi and Tonghua Grape Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Tonghua Grape
The main advantage of trading using opposite Guangdong Jingyi and Tonghua Grape positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Tonghua Grape 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 Tonghua Grape will offset losses from the drop in Tonghua Grape'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 |
| Tonghua Grape vs. Peoples Insurance of | Tonghua Grape vs. Guangdong Jingyi Metal | Tonghua Grape vs. China Minmetals Rare | Tonghua Grape vs. Hengli Industrial Development |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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