Correlation Between Guangzhou Zhujiang and Jiangsu Yueda
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By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Guangzhou Zhujiang and Jiangsu Yueda 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 Guangzhou Zhujiang with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and Jiangsu Yueda.
Diversification Opportunities for Guangzhou Zhujiang and Jiangsu Yueda
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and Jiangsu is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Guangzhou Zhujiang i.e., Guangzhou Zhujiang and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and Jiangsu Yueda
Assuming the 90 days trading horizon Guangzhou Zhujiang Brewery is expected to generate 0.55 times more return on investment than Jiangsu Yueda. However, Guangzhou Zhujiang Brewery is 1.83 times less risky than Jiangsu Yueda. It trades about -0.16 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.32 per unit of risk. If you would invest 954.00 in Guangzhou Zhujiang Brewery on October 16, 2024 and sell it today you would lose (41.00) from holding Guangzhou Zhujiang Brewery or give up 4.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Guangzhou Zhujiang |
| Jiangsu Yueda Investment |
Guangzhou Zhujiang and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and Jiangsu Yueda
The main advantage of trading using opposite Guangzhou Zhujiang and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Guangzhou Zhujiang vs. Guizhou Chanhen Chemical | Guangzhou Zhujiang vs. Financial Street Holdings | Guangzhou Zhujiang vs. Hua Xia Bank | Guangzhou Zhujiang vs. Ping An Insurance |
| Jiangsu Yueda vs. Bangyan Technology Co | Jiangsu Yueda vs. Guangzhou Zhujiang Brewery | Jiangsu Yueda vs. Montage Technology Co | Jiangsu Yueda vs. Kingsignal Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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