Correlation Between Guangdong Jingyi and Huitong Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Huitong Construction Group, you can compare the effects of market volatilities on Guangdong Jingyi and Huitong Construction 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 Huitong Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Huitong Construction.
Diversification Opportunities for Guangdong Jingyi and Huitong Construction
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Huitong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Huitong Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huitong Construction 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 Huitong Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huitong Construction has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Huitong Construction go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Huitong Construction
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.19 times more return on investment than Huitong Construction. However, Guangdong Jingyi is 1.19 times more volatile than Huitong Construction Group. It trades about 0.27 of its potential returns per unit of risk. Huitong Construction Group is currently generating about 0.1 per unit of risk. If you would invest 595.00 in Guangdong Jingyi Metal on August 25, 2024 and sell it today you would earn a total of 103.00 from holding Guangdong Jingyi Metal or generate 17.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Huitong Construction Group
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Huitong Construction |
Guangdong Jingyi and Huitong Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Huitong Construction
The main advantage of trading using opposite Guangdong Jingyi and Huitong Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Huitong Construction 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 Huitong Construction will offset losses from the drop in Huitong Construction'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 |
| Huitong Construction vs. Ming Yang Smart | Huitong Construction vs. 159681 | Huitong Construction vs. 159005 | Huitong Construction vs. Loctek Ergonomic 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |