Correlation Between Guangzhou Boji and HeBei Jinniu
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By analyzing existing cross correlation between Guangzhou Boji Medical and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Guangzhou Boji and HeBei Jinniu 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 Guangzhou Boji with a short position of HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Boji and HeBei Jinniu.
Diversification Opportunities for Guangzhou Boji and HeBei Jinniu
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guangzhou and HeBei is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Boji Medical and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu Chemical and Guangzhou Boji 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 Guangzhou Boji Medical are associated (or correlated) with HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Guangzhou Boji i.e., Guangzhou Boji and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Guangzhou Boji and HeBei Jinniu
Assuming the 90 days trading horizon Guangzhou Boji Medical is expected to under-perform the HeBei Jinniu. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Boji Medical is 1.99 times less risky than HeBei Jinniu. The stock trades about -0.12 of its potential returns per unit of risk. The HeBei Jinniu Chemical is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 468.00 in HeBei Jinniu Chemical on November 1, 2024 and sell it today you would earn a total of 94.00 from holding HeBei Jinniu Chemical or generate 20.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Boji Medical vs. HeBei Jinniu Chemical
Performance |
| Timeline |
| Guangzhou Boji Medical |
| HeBei Jinniu Chemical |
Guangzhou Boji and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Boji and HeBei Jinniu
The main advantage of trading using opposite Guangzhou Boji and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Boji position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Guangzhou Boji vs. HeBei Jinniu Chemical | Guangzhou Boji vs. Double Medical Technology | Guangzhou Boji vs. Hengli Petrochemical Co | Guangzhou Boji vs. Sino Medical Sciences |
| HeBei Jinniu vs. Beijing Kaiwen Education | HeBei Jinniu vs. Queclink Wireless Solutions | HeBei Jinniu vs. Shenzhen Centralcon Investment | HeBei Jinniu vs. Beijing Kingsoft Office |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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