Correlation Between Guilin Seamild and Guangdong Jingyi
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By analyzing existing cross correlation between Guilin Seamild Foods and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Guilin Seamild and Guangdong Jingyi 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 Guilin Seamild with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Guangdong Jingyi.
Diversification Opportunities for Guilin Seamild and Guangdong Jingyi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guilin and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Guilin Seamild 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 Guilin Seamild Foods are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Guilin Seamild and Guangdong Jingyi
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.41 times more return on investment than Guangdong Jingyi. However, Guilin Seamild is 1.41 times more volatile than Guangdong Jingyi Metal. It trades about 0.22 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.19 per unit of risk. If you would invest 1,378 in Guilin Seamild Foods on September 12, 2024 and sell it today you would earn a total of 146.00 from holding Guilin Seamild Foods or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Guilin Seamild Foods |
| Guangdong Jingyi Metal |
Guilin Seamild and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Guangdong Jingyi
The main advantage of trading using opposite Guilin Seamild and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Guilin Seamild vs. China Petroleum Chemical | Guilin Seamild vs. PetroChina Co Ltd | Guilin Seamild vs. China State Construction | Guilin Seamild vs. China Railway Group |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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