Correlation Between Guangdong Jingyi and Heilongjiang Publishing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Heilongjiang Publishing Media, you can compare the effects of market volatilities on Guangdong Jingyi and Heilongjiang Publishing 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 Heilongjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Heilongjiang Publishing.
Diversification Opportunities for Guangdong Jingyi and Heilongjiang Publishing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Heilongjiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Heilongjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Publishing 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 Heilongjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Publishing has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Heilongjiang Publishing go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Heilongjiang Publishing
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.21 times more return on investment than Heilongjiang Publishing. However, Guangdong Jingyi is 1.21 times more volatile than Heilongjiang Publishing Media. It trades about -0.17 of its potential returns per unit of risk. Heilongjiang Publishing Media is currently generating about -0.35 per unit of risk. If you would invest 755.00 in Guangdong Jingyi Metal on October 18, 2024 and sell it today you would lose (88.00) from holding Guangdong Jingyi Metal or give up 11.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Heilongjiang Publishing Media
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Heilongjiang Publishing |
Guangdong Jingyi and Heilongjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Heilongjiang Publishing
The main advantage of trading using opposite Guangdong Jingyi and Heilongjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Heilongjiang Publishing 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 Heilongjiang Publishing will offset losses from the drop in Heilongjiang Publishing's long position.The idea behind Guangdong Jingyi Metal and Heilongjiang Publishing Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Heilongjiang Publishing vs. Jonjee Hi tech Industrial | Heilongjiang Publishing vs. Zhengzhou Coal Mining | Heilongjiang Publishing vs. Great Sun Foods Co | Heilongjiang Publishing vs. Guangdong Jingyi Metal |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |