Correlation Between Guangdong Jinming and De Rucci
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jinming Machinery and De Rucci Healthy, you can compare the effects of market volatilities on Guangdong Jinming and De Rucci 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 Jinming with a short position of De Rucci. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinming and De Rucci.
Diversification Opportunities for Guangdong Jinming and De Rucci
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and 001323 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinming Machinery and De Rucci Healthy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on De Rucci Healthy and Guangdong Jinming 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 Jinming Machinery are associated (or correlated) with De Rucci. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of De Rucci Healthy has no effect on the direction of Guangdong Jinming i.e., Guangdong Jinming and De Rucci go up and down completely randomly.
Pair Corralation between Guangdong Jinming and De Rucci
Assuming the 90 days trading horizon Guangdong Jinming Machinery is expected to generate 1.32 times more return on investment than De Rucci. However, Guangdong Jinming is 1.32 times more volatile than De Rucci Healthy. It trades about 0.05 of its potential returns per unit of risk. De Rucci Healthy is currently generating about 0.03 per unit of risk. If you would invest 667.00 in Guangdong Jinming Machinery on September 12, 2024 and sell it today you would earn a total of 18.00 from holding Guangdong Jinming Machinery or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinming Machinery vs. De Rucci Healthy
Performance |
| Timeline |
| Guangdong Jinming |
| De Rucci Healthy |
Guangdong Jinming and De Rucci Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinming and De Rucci
The main advantage of trading using opposite Guangdong Jinming and De Rucci positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinming position performs unexpectedly, De Rucci 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 De Rucci will offset losses from the drop in De Rucci's long position.| Guangdong Jinming vs. Agricultural Bank of | Guangdong Jinming vs. Industrial and Commercial | Guangdong Jinming vs. Bank of China | Guangdong Jinming vs. PetroChina Co Ltd |
| De Rucci vs. Lutian Machinery Co | De Rucci vs. PetroChina Co Ltd | De Rucci vs. Bank of China | De Rucci vs. Gansu Jiu Steel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |