Correlation Between Guangzhou Jointas and Jiangsu Xinning
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Guangzhou Jointas and Jiangsu Xinning 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 Jointas with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Jiangsu Xinning.
Diversification Opportunities for Guangzhou Jointas and Jiangsu Xinning
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and Guangzhou Jointas 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 Jointas Chemical are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Jiangsu Xinning
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the Jiangsu Xinning. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Jointas Chemical is 1.63 times less risky than Jiangsu Xinning. The stock trades about -0.03 of its potential returns per unit of risk. The Jiangsu Xinning Modern is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 570.00 in Jiangsu Xinning Modern on August 28, 2024 and sell it today you would lose (164.00) from holding Jiangsu Xinning Modern or give up 28.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Guangzhou Jointas |
| Jiangsu Xinning Modern |
Guangzhou Jointas and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Jiangsu Xinning
The main advantage of trading using opposite Guangzhou Jointas and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Jiangsu Xinning 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 Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
| Jiangsu Xinning vs. North Huajin Chemical | Jiangsu Xinning vs. Miracll Chemicals Co | Jiangsu Xinning vs. Shandong Ruifeng Chemical | Jiangsu Xinning vs. Guangzhou Jointas Chemical |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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