Correlation Between Guangdong Jingyi and GreenTech Environmental
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By analyzing existing cross correlation between Guangdong Jingyi Metal and GreenTech Environmental Co, you can compare the effects of market volatilities on Guangdong Jingyi and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and GreenTech Environmental.
Diversification Opportunities for Guangdong Jingyi and GreenTech Environmental
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and GreenTech is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and GreenTech Environmental
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.0 times more return on investment than GreenTech Environmental. However, Guangdong Jingyi Metal is 1.0 times less risky than GreenTech Environmental. It trades about 0.02 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about 0.01 per unit of risk. If you would invest 691.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Jingyi Metal or generate 10.56% 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. GreenTech Environmental Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| GreenTech Environmental |
Guangdong Jingyi and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and GreenTech Environmental
The main advantage of trading using opposite Guangdong Jingyi and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Gansu Jiu Steel | GreenTech Environmental vs. Shandong Mining Machinery | GreenTech Environmental vs. Aba Chemicals Corp | GreenTech Environmental vs. BlueFocus Communication Group |
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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