Correlation Between Guangdong Jingyi and Suzhou Xingye
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Suzhou Xingye Material, you can compare the effects of market volatilities on Guangdong Jingyi and Suzhou Xingye 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 Suzhou Xingye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Suzhou Xingye.
Diversification Opportunities for Guangdong Jingyi and Suzhou Xingye
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Suzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Suzhou Xingye Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Xingye Material 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 Suzhou Xingye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Xingye Material has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Suzhou Xingye go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Suzhou Xingye
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.98 times more return on investment than Suzhou Xingye. However, Guangdong Jingyi Metal is 1.02 times less risky than Suzhou Xingye. It trades about 0.02 of its potential returns per unit of risk. Suzhou Xingye Material is currently generating about 0.0 per unit of risk. If you would invest 692.00 in Guangdong Jingyi Metal on September 2, 2024 and sell it today you would earn a total of 44.00 from holding Guangdong Jingyi Metal or generate 6.36% 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. Suzhou Xingye Material
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Suzhou Xingye Material |
Guangdong Jingyi and Suzhou Xingye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Suzhou Xingye
The main advantage of trading using opposite Guangdong Jingyi and Suzhou Xingye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Suzhou Xingye 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 Suzhou Xingye will offset losses from the drop in Suzhou Xingye's long position.| Guangdong Jingyi vs. Dongfeng Automobile Co | Guangdong Jingyi vs. Peoples Insurance of | Guangdong Jingyi vs. China Life Insurance | Guangdong Jingyi vs. Anhui Deli Household |
| Suzhou Xingye vs. Zijin Mining Group | Suzhou Xingye vs. Wanhua Chemical Group | Suzhou Xingye vs. Baoshan Iron Steel | Suzhou Xingye vs. Shandong Gold Mining |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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