Correlation Between Guangdong Wens and Jiangsu Bioperfectus
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Jiangsu Bioperfectus Technologies, you can compare the effects of market volatilities on Guangdong Wens and Jiangsu Bioperfectus 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 Wens with a short position of Jiangsu Bioperfectus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Jiangsu Bioperfectus.
Diversification Opportunities for Guangdong Wens and Jiangsu Bioperfectus
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Jiangsu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff and Jiangsu Bioperfectus Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Bioperfectus and Guangdong Wens 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 Wens Foodstuff are associated (or correlated) with Jiangsu Bioperfectus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Bioperfectus has no effect on the direction of Guangdong Wens i.e., Guangdong Wens and Jiangsu Bioperfectus go up and down completely randomly.
Pair Corralation between Guangdong Wens and Jiangsu Bioperfectus
Assuming the 90 days trading horizon Guangdong Wens is expected to generate 9.38 times less return on investment than Jiangsu Bioperfectus. But when comparing it to its historical volatility, Guangdong Wens Foodstuff is 1.2 times less risky than Jiangsu Bioperfectus. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Bioperfectus Technologies is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,967 in Jiangsu Bioperfectus Technologies on September 4, 2024 and sell it today you would earn a total of 2,299 from holding Jiangsu Bioperfectus Technologies or generate 46.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Jiangsu Bioperfectus Technolog
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Jiangsu Bioperfectus |
Guangdong Wens and Jiangsu Bioperfectus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Jiangsu Bioperfectus
The main advantage of trading using opposite Guangdong Wens and Jiangsu Bioperfectus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens position performs unexpectedly, Jiangsu Bioperfectus 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 Bioperfectus will offset losses from the drop in Jiangsu Bioperfectus' long position.| Guangdong Wens vs. Lingyuan Iron Steel | Guangdong Wens vs. Changjiang Publishing Media | Guangdong Wens vs. StarPower Semiconductor | Guangdong Wens vs. Semiconductor Manufacturing Electronics |
| Jiangsu Bioperfectus vs. China Publishing Media | Jiangsu Bioperfectus vs. Kingclean Electric Co | Jiangsu Bioperfectus vs. Shandong Publishing Media | Jiangsu Bioperfectus vs. Luyin Investment Group |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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