Correlation Between Guangzhou Jointas and Jinzhou Port
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Jinzhou Port Co, you can compare the effects of market volatilities on Guangzhou Jointas and Jinzhou Port 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 Jinzhou Port. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Jinzhou Port.
Diversification Opportunities for Guangzhou Jointas and Jinzhou Port
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and Jinzhou is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Jinzhou Port Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzhou Port 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 Jinzhou Port. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzhou Port has no effect on the direction of Guangzhou Jointas i.e., Guangzhou Jointas and Jinzhou Port go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Jinzhou Port
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 1.05 times more return on investment than Jinzhou Port. However, Guangzhou Jointas is 1.05 times more volatile than Jinzhou Port Co. It trades about -0.01 of its potential returns per unit of risk. Jinzhou Port Co is currently generating about -0.04 per unit of risk. If you would invest 736.00 in Guangzhou Jointas Chemical on September 14, 2024 and sell it today you would lose (140.00) from holding Guangzhou Jointas Chemical or give up 19.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Jinzhou Port Co
Performance |
| Timeline |
| Guangzhou Jointas |
| Jinzhou Port |
Guangzhou Jointas and Jinzhou Port Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Jinzhou Port
The main advantage of trading using opposite Guangzhou Jointas and Jinzhou Port positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas position performs unexpectedly, Jinzhou Port 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 Jinzhou Port will offset losses from the drop in Jinzhou Port's long position.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| Jinzhou Port vs. Industrial and Commercial | Jinzhou Port vs. Agricultural Bank of | Jinzhou Port vs. China Construction Bank | Jinzhou Port 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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