Correlation Between Guangdong Shenglu and Jingjin Environmental
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Jingjin Environmental Protection, you can compare the effects of market volatilities on Guangdong Shenglu and Jingjin 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 Shenglu with a short position of Jingjin Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Jingjin Environmental.
Diversification Opportunities for Guangdong Shenglu and Jingjin Environmental
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jingjin is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Jingjin Environmental Protecti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jingjin Environmental 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 Jingjin Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jingjin Environmental has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Jingjin Environmental go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Jingjin Environmental
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.4 times more return on investment than Jingjin Environmental. However, Guangdong Shenglu is 1.4 times more volatile than Jingjin Environmental Protection. It trades about 0.01 of its potential returns per unit of risk. Jingjin Environmental Protection is currently generating about -0.01 per unit of risk. If you would invest 817.00 in Guangdong Shenglu Telecommunication on September 12, 2024 and sell it today you would lose (51.00) from holding Guangdong Shenglu Telecommunication or give up 6.24% 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. Jingjin Environmental Protecti
Performance |
| Timeline |
| Guangdong Shenglu |
| Jingjin Environmental |
Guangdong Shenglu and Jingjin Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Jingjin Environmental
The main advantage of trading using opposite Guangdong Shenglu and Jingjin Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Jingjin 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 Jingjin Environmental will offset losses from the drop in Jingjin Environmental's long position.| Guangdong Shenglu vs. Gansu Jiu Steel | Guangdong Shenglu vs. Shandong Mining Machinery | Guangdong Shenglu vs. Aba Chemicals Corp | Guangdong Shenglu 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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