Correlation Between Guangdong Jingyi and Ye Chiu
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Ye Chiu Metal, you can compare the effects of market volatilities on Guangdong Jingyi and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Ye Chiu.
Diversification Opportunities for Guangdong Jingyi and Ye Chiu
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and 601388 is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Ye Chiu go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Ye Chiu
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.11 times more return on investment than Ye Chiu. However, Guangdong Jingyi is 1.11 times more volatile than Ye Chiu Metal. It trades about 0.02 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.01 per unit of risk. If you would invest 696.00 in Guangdong Jingyi Metal on September 4, 2024 and sell it today you would earn a total of 53.00 from holding Guangdong Jingyi Metal or generate 7.61% 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. Ye Chiu Metal
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Ye Chiu Metal |
Guangdong Jingyi and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Ye Chiu
The main advantage of trading using opposite Guangdong Jingyi and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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