Correlation Between Guangdong Jingyi and Touchstone International
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Touchstone International Medical, you can compare the effects of market volatilities on Guangdong Jingyi and Touchstone International 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 Touchstone International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Touchstone International.
Diversification Opportunities for Guangdong Jingyi and Touchstone International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Touchstone is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Touchstone International Medic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone International 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 Touchstone International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone International has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Touchstone International go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Touchstone International
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.09 times more return on investment than Touchstone International. However, Guangdong Jingyi is 1.09 times more volatile than Touchstone International Medical. It trades about 0.0 of its potential returns per unit of risk. Touchstone International Medical is currently generating about 0.0 per unit of risk. If you would invest 760.00 in Guangdong Jingyi Metal on October 14, 2024 and sell it today you would lose (134.00) from holding Guangdong Jingyi Metal or give up 17.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Touchstone International Medic
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Touchstone International |
Guangdong Jingyi and Touchstone International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Touchstone International
The main advantage of trading using opposite Guangdong Jingyi and Touchstone International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Touchstone International 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 Touchstone International will offset losses from the drop in Touchstone International's long position.| Guangdong Jingyi vs. Anhui Gujing Distillery | Guangdong Jingyi vs. Beijing HuaYuanYiTong Thermal | Guangdong Jingyi vs. Guocheng Mining Co | Guangdong Jingyi vs. Hainan Mining Co |
| Touchstone International vs. Shengda Mining Co | Touchstone International vs. Guangdong Jingyi Metal | Touchstone International vs. Xinjiang Baodi Mining | Touchstone International vs. Tibet Huayu 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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