Correlation Between Guangzhou Jointas and Changjiang Jinggong
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Guangzhou Jointas and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Changjiang Jinggong.
Diversification Opportunities for Guangzhou Jointas and Changjiang Jinggong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and Changjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Changjiang Jinggong
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 1.96 times more return on investment than Changjiang Jinggong. However, Guangzhou Jointas is 1.96 times more volatile than Changjiang Jinggong Steel. It trades about 0.2 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about 0.01 per unit of risk. If you would invest 496.00 in Guangzhou Jointas Chemical on September 4, 2024 and sell it today you would earn a total of 63.00 from holding Guangzhou Jointas Chemical or generate 12.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Guangzhou Jointas |
| Changjiang Jinggong Steel |
Guangzhou Jointas and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Changjiang Jinggong
The main advantage of trading using opposite Guangzhou Jointas and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Rongsheng Petrochemical Co |
| Changjiang Jinggong vs. Guangzhou Jointas Chemical | Changjiang Jinggong vs. China National Software | Changjiang Jinggong vs. Dhc Software Co | Changjiang Jinggong vs. Bomesc Offshore Engineering |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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