Correlation Between Guangdong Shenglu and Guangdong Jingyi
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Guangdong Shenglu and Guangdong Jingyi 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 Shenglu with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Guangdong Jingyi.
Diversification Opportunities for Guangdong Shenglu and Guangdong Jingyi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Guangdong Shenglu 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 Shenglu Telecommunication are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Guangdong Jingyi
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 0.89 times more return on investment than Guangdong Jingyi. However, Guangdong Shenglu Telecommunication is 1.13 times less risky than Guangdong Jingyi. It trades about -0.2 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.23 per unit of risk. If you would invest 740.00 in Guangdong Shenglu Telecommunication on October 17, 2024 and sell it today you would lose (97.00) from holding Guangdong Shenglu Telecommunication or give up 13.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Guangdong Shenglu |
| Guangdong Jingyi Metal |
Guangdong Shenglu and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Guangdong Jingyi
The main advantage of trading using opposite Guangdong Shenglu and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Guangdong Shenglu vs. ZYF Lopsking Aluminum | Guangdong Shenglu vs. Guangdong Jinma Entertainment | Guangdong Shenglu vs. Chengdu B ray Media | Guangdong Shenglu vs. JiShi Media Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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