Correlation Between East Money and Guangdong Jingyi
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By analyzing existing cross correlation between East Money Information and Guangdong Jingyi Metal, you can compare the effects of market volatilities on East Money 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 East Money with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of East Money and Guangdong Jingyi.
Diversification Opportunities for East Money and Guangdong Jingyi
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between East and Guangdong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding East Money Information 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 East Money 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 East Money Information 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 East Money i.e., East Money and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between East Money and Guangdong Jingyi
Assuming the 90 days trading horizon East Money Information is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, East Money Information is 1.22 times less risky than Guangdong Jingyi. The stock trades about -0.37 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 764.00 in Guangdong Jingyi Metal on October 11, 2024 and sell it today you would lose (121.00) from holding Guangdong Jingyi Metal or give up 15.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
East Money Information vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| East Money Information |
| Guangdong Jingyi Metal |
East Money and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with East Money and Guangdong Jingyi
The main advantage of trading using opposite East Money and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if East Money 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.| East Money vs. Zhonghang Electronic Measuring | East Money vs. Jilin Jlu Communication | East Money vs. Shijiazhuang Tonhe Electronics | East Money vs. Citic Offshore Helicopter |
| Guangdong Jingyi vs. Heren Health Co | Guangdong Jingyi vs. Jiugui Liquor Co | Guangdong Jingyi vs. Hangzhou Minsheng Healthcare | Guangdong Jingyi vs. Shandong Sinoglory Health |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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