Correlation Between Guangdong Xiongsu and Jiangnan Mould
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Jiangnan Mould Plastic, you can compare the effects of market volatilities on Guangdong Xiongsu and Jiangnan Mould 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 Xiongsu with a short position of Jiangnan Mould. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Jiangnan Mould.
Diversification Opportunities for Guangdong Xiongsu and Jiangnan Mould
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jiangnan is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Jiangnan Mould Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangnan Mould Plastic and Guangdong Xiongsu 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 Xiongsu Technology are associated (or correlated) with Jiangnan Mould. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangnan Mould Plastic has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Jiangnan Mould go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Jiangnan Mould
Assuming the 90 days trading horizon Guangdong Xiongsu is expected to generate 1.5 times less return on investment than Jiangnan Mould. But when comparing it to its historical volatility, Guangdong Xiongsu Technology is 1.05 times less risky than Jiangnan Mould. It trades about 0.11 of its potential returns per unit of risk. Jiangnan Mould Plastic is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 676.00 in Jiangnan Mould Plastic on September 4, 2024 and sell it today you would earn a total of 76.00 from holding Jiangnan Mould Plastic or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Jiangnan Mould Plastic
Performance |
| Timeline |
| Guangdong Xiongsu |
| Jiangnan Mould Plastic |
Guangdong Xiongsu and Jiangnan Mould Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Jiangnan Mould
The main advantage of trading using opposite Guangdong Xiongsu and Jiangnan Mould positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Jiangnan Mould 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 Jiangnan Mould will offset losses from the drop in Jiangnan Mould's long position.| Guangdong Xiongsu vs. Jiangnan Mould Plastic | Guangdong Xiongsu vs. Fuda Alloy Materials | Guangdong Xiongsu vs. Guangzhou Ruoyuchen Information | Guangdong Xiongsu vs. Renxin New Material |
| Jiangnan Mould vs. Cultural Investment Holdings | Jiangnan Mould vs. Gome Telecom Equipment | Jiangnan Mould vs. Bus Online Co | Jiangnan Mould vs. Holitech Technology Co |
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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