Correlation Between Guangzhou Shiyuan and Jiangsu Yueda
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By analyzing existing cross correlation between Guangzhou Shiyuan Electronic and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Guangzhou Shiyuan 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 Shiyuan with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Shiyuan and Jiangsu Yueda.
Diversification Opportunities for Guangzhou Shiyuan and Jiangsu Yueda
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Jiangsu is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Shiyuan Electronic 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 Shiyuan 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 Shiyuan Electronic 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 Shiyuan i.e., Guangzhou Shiyuan and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Guangzhou Shiyuan and Jiangsu Yueda
Assuming the 90 days trading horizon Guangzhou Shiyuan Electronic is expected to under-perform the Jiangsu Yueda. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Shiyuan Electronic is 1.12 times less risky than Jiangsu Yueda. The stock trades about -0.32 of its potential returns per unit of risk. The Jiangsu Yueda Investment is currently generating about -0.28 of returns per unit of risk over similar time horizon. If you would invest 487.00 in Jiangsu Yueda Investment on October 9, 2024 and sell it today you would lose (65.00) from holding Jiangsu Yueda Investment or give up 13.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Shiyuan Electronic vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Guangzhou Shiyuan |
| Jiangsu Yueda Investment |
Guangzhou Shiyuan and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Shiyuan and Jiangsu Yueda
The main advantage of trading using opposite Guangzhou Shiyuan and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Shiyuan 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 Shiyuan vs. Biwin Storage Technology | Guangzhou Shiyuan vs. PetroChina Co Ltd | Guangzhou Shiyuan vs. Industrial and Commercial | Guangzhou Shiyuan vs. China Construction Bank |
| Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. Agricultural Bank of | Jiangsu Yueda vs. China Construction Bank | Jiangsu Yueda vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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