Correlation Between Guangdong Tianhe and Jiangsu Seagull
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By analyzing existing cross correlation between Guangdong Tianhe Agricultural and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Guangdong Tianhe and Jiangsu Seagull 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 Guangdong Tianhe with a short position of Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and Jiangsu Seagull.
Diversification Opportunities for Guangdong Tianhe and Jiangsu Seagull
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Guangdong and Jiangsu is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling and Guangdong Tianhe 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 Guangdong Tianhe Agricultural are associated (or correlated) with Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Guangdong Tianhe i.e., Guangdong Tianhe and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and Jiangsu Seagull
Assuming the 90 days trading horizon Guangdong Tianhe is expected to generate 29.64 times less return on investment than Jiangsu Seagull. But when comparing it to its historical volatility, Guangdong Tianhe Agricultural is 2.71 times less risky than Jiangsu Seagull. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,069 in Jiangsu Seagull Cooling on October 31, 2024 and sell it today you would earn a total of 81.00 from holding Jiangsu Seagull Cooling or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Tianhe Agricultural vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Guangdong Tianhe Agr |
| Jiangsu Seagull Cooling |
Guangdong Tianhe and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Tianhe and Jiangsu Seagull
The main advantage of trading using opposite Guangdong Tianhe and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe position performs unexpectedly, Jiangsu Seagull 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 Jiangsu Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Guangdong Tianhe vs. Jiangnan Mould Plastic | Guangdong Tianhe vs. Sportsoul Co Ltd | Guangdong Tianhe vs. Jiangsu Jinling Sports | Guangdong Tianhe vs. Sanxiang Advanced Materials |
| Jiangsu Seagull vs. Gem Year Industrial Co | Jiangsu Seagull vs. Xinjiang Baodi Mining | Jiangsu Seagull vs. Jiahe Foods Industry | Jiangsu Seagull vs. Hainan Mining 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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