Correlation Between Guilin Seamild and Jiujiang Shanshui
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By analyzing existing cross correlation between Guilin Seamild Foods and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Guilin Seamild and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Jiujiang Shanshui.
Diversification Opportunities for Guilin Seamild and Jiujiang Shanshui
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guilin and Jiujiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Guilin Seamild and Jiujiang Shanshui
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 1.39 times more return on investment than Jiujiang Shanshui. However, Guilin Seamild is 1.39 times more volatile than Jiujiang Shanshui Technology. It trades about 0.4 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.08 per unit of risk. If you would invest 1,364 in Guilin Seamild Foods on September 14, 2024 and sell it today you would earn a total of 397.00 from holding Guilin Seamild Foods or generate 29.11% 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. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Guilin Seamild Foods |
| Jiujiang Shanshui |
Guilin Seamild and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Jiujiang Shanshui
The main advantage of trading using opposite Guilin Seamild and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Guilin Seamild vs. Nanjing Putian Telecommunications | Guilin Seamild vs. Tianjin Realty Development | Guilin Seamild vs. Kangyue Technology Co | Guilin Seamild vs. Shenzhen Hifuture Electric |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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