Correlation Between Guangdong Jinming and ButOne Information
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By analyzing existing cross correlation between Guangdong Jinming Machinery and ButOne Information Corp, you can compare the effects of market volatilities on Guangdong Jinming and ButOne Information 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 ButOne Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinming and ButOne Information.
Diversification Opportunities for Guangdong Jinming and ButOne Information
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and ButOne is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinming Machinery and ButOne Information Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ButOne Information Corp 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 ButOne Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ButOne Information Corp has no effect on the direction of Guangdong Jinming i.e., Guangdong Jinming and ButOne Information go up and down completely randomly.
Pair Corralation between Guangdong Jinming and ButOne Information
Assuming the 90 days trading horizon Guangdong Jinming Machinery is expected to generate 1.27 times more return on investment than ButOne Information. However, Guangdong Jinming is 1.27 times more volatile than ButOne Information Corp. It trades about 0.04 of its potential returns per unit of risk. ButOne Information Corp is currently generating about 0.02 per unit of risk. If you would invest 484.00 in Guangdong Jinming Machinery on September 13, 2024 and sell it today you would earn a total of 216.00 from holding Guangdong Jinming Machinery or generate 44.63% 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. ButOne Information Corp
Performance |
| Timeline |
| Guangdong Jinming |
| ButOne Information Corp |
Guangdong Jinming and ButOne Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinming and ButOne Information
The main advantage of trading using opposite Guangdong Jinming and ButOne Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinming position performs unexpectedly, ButOne Information 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 ButOne Information will offset losses from the drop in ButOne Information's long position.| Guangdong Jinming vs. Industrial and Commercial | Guangdong Jinming vs. Kweichow Moutai Co | Guangdong Jinming vs. Agricultural Bank of | Guangdong Jinming vs. China Mobile Limited |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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