Correlation Between Jiangxi Hengda and Jiangsu GDK
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Jiangxi Hengda and Jiangsu GDK 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 Jiangxi Hengda with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Jiangsu GDK.
Diversification Opportunities for Jiangxi Hengda and Jiangsu GDK
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Jiangsu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Jiangsu GDK
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.64 times more return on investment than Jiangsu GDK. However, Jiangxi Hengda is 1.64 times more volatile than Jiangsu GDK Biotechnology. It trades about -0.16 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.46 per unit of risk. If you would invest 598.00 in Jiangxi Hengda Hi Tech on October 11, 2024 and sell it today you would lose (97.00) from holding Jiangxi Hengda Hi Tech or give up 16.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Jiangsu GDK Biotechnology |
Jiangxi Hengda and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Jiangsu GDK
The main advantage of trading using opposite Jiangxi Hengda and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Jiangsu GDK 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 GDK will offset losses from the drop in Jiangsu GDK's long position.| Jiangxi Hengda vs. Nanjing Vishee Medical | Jiangxi Hengda vs. Xiangyu Medical Co | Jiangxi Hengda vs. Shanghai Sanyou Medical | Jiangxi Hengda vs. Medprin Regenerative Medical |
| Jiangsu GDK vs. Kuang Chi Technologies | Jiangsu GDK vs. Allwin Telecommunication Co | Jiangsu GDK vs. Nanjing Putian Telecommunications | Jiangsu GDK vs. Jiangxi Hengda Hi Tech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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