Correlation Between Guangdong Jingyi and Senci Electric
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Senci Electric Machinery, you can compare the effects of market volatilities on Guangdong Jingyi and Senci Electric 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 Senci Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Senci Electric.
Diversification Opportunities for Guangdong Jingyi and Senci Electric
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Senci is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Senci Electric Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senci Electric Machinery 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 Senci Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senci Electric Machinery has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Senci Electric go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Senci Electric
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.77 times more return on investment than Senci Electric. However, Guangdong Jingyi Metal is 1.3 times less risky than Senci Electric. It trades about 0.22 of its potential returns per unit of risk. Senci Electric Machinery is currently generating about 0.02 per unit of risk. If you would invest 718.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Guangdong Jingyi Metal or generate 7.66% 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. Senci Electric Machinery
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Senci Electric Machinery |
Guangdong Jingyi and Senci Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Senci Electric
The main advantage of trading using opposite Guangdong Jingyi and Senci Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Senci Electric 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 Senci Electric will offset losses from the drop in Senci Electric'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 |
| Senci Electric vs. Agricultural Bank of | Senci Electric vs. Industrial and Commercial | Senci Electric vs. Bank of China | Senci Electric vs. PetroChina Co Ltd |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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