Correlation Between Guilin Seamild and Jadard Technology
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By analyzing existing cross correlation between Guilin Seamild Foods and Jadard Technology A, you can compare the effects of market volatilities on Guilin Seamild and Jadard Technology 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 Jadard Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and Jadard Technology.
Diversification Opportunities for Guilin Seamild and Jadard Technology
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guilin and Jadard is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods and Jadard Technology A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadard Technology 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 Jadard Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadard Technology has no effect on the direction of Guilin Seamild i.e., Guilin Seamild and Jadard Technology go up and down completely randomly.
Pair Corralation between Guilin Seamild and Jadard Technology
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.69 times more return on investment than Jadard Technology. However, Guilin Seamild Foods is 1.45 times less risky than Jadard Technology. It trades about 0.23 of its potential returns per unit of risk. Jadard Technology A is currently generating about 0.03 per unit of risk. If you would invest 1,324 in Guilin Seamild Foods on September 4, 2024 and sell it today you would earn a total of 147.00 from holding Guilin Seamild Foods or generate 11.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. Jadard Technology A
Performance |
| Timeline |
| Guilin Seamild Foods |
| Jadard Technology |
Guilin Seamild and Jadard Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and Jadard Technology
The main advantage of trading using opposite Guilin Seamild and Jadard Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild position performs unexpectedly, Jadard Technology 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 Jadard Technology will offset losses from the drop in Jadard Technology's long position.| Guilin Seamild vs. Poly Real Estate | Guilin Seamild vs. China Vanke Co | Guilin Seamild vs. China Merchants Shekou | Guilin Seamild vs. Huafa Industrial Co |
| Jadard Technology vs. Chengdu Xinzhu RoadBridge | Jadard Technology vs. Jiangsu Broadcasting Cable | Jadard Technology vs. Heilongjiang Transport Development | Jadard Technology vs. Maccura Biotechnology 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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