Correlation Between Guangdong Jingyi and Industrial
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Industrial and Commercial, you can compare the effects of market volatilities on Guangdong Jingyi and 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Industrial.
Diversification Opportunities for Guangdong Jingyi and Industrial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangdong and Industrial is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Industrial go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Industrial
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 2.22 times more return on investment than Industrial. However, Guangdong Jingyi is 2.22 times more volatile than Industrial and Commercial. It trades about -0.04 of its potential returns per unit of risk. Industrial and Commercial is currently generating about -0.14 per unit of risk. If you would invest 701.00 in Guangdong Jingyi Metal on October 24, 2024 and sell it today you would lose (21.00) from holding Guangdong Jingyi Metal or give up 3.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Industrial and Commercial
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Industrial and Commercial |
Guangdong Jingyi and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Industrial
The main advantage of trading using opposite Guangdong Jingyi and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, 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 Industrial will offset losses from the drop in 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 |
| Industrial vs. Touchstone International Medical | Industrial vs. Dazhong Transportation Group | Industrial vs. Shenzhen Topway Video | Industrial vs. Allgens Medical Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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