Correlation Between Guangdong Jingyi and Dongxing Sec
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Dongxing Sec Co, you can compare the effects of market volatilities on Guangdong Jingyi and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Dongxing Sec.
Diversification Opportunities for Guangdong Jingyi and Dongxing Sec
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Dongxing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Dongxing Sec go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Dongxing Sec
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 2.02 times less return on investment than Dongxing Sec. In addition to that, Guangdong Jingyi is 1.34 times more volatile than Dongxing Sec Co. It trades about 0.02 of its total potential returns per unit of risk. Dongxing Sec Co is currently generating about 0.05 per unit of volatility. If you would invest 801.00 in Dongxing Sec Co on September 5, 2024 and sell it today you would earn a total of 349.00 from holding Dongxing Sec Co or generate 43.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Dongxing Sec Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Dongxing Sec |
Guangdong Jingyi and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Dongxing Sec
The main advantage of trading using opposite Guangdong Jingyi and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining |
| Dongxing Sec vs. Renxin New Material | Dongxing Sec vs. Road Environment Technology | Dongxing Sec vs. Suzhou Xingye Material | Dongxing Sec vs. Chengdu Xinzhu RoadBridge |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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