Correlation Between Guangdong Xiongsu and Ningbo Jintian
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By analyzing existing cross correlation between Guangdong Xiongsu Technology and Ningbo Jintian Copper, you can compare the effects of market volatilities on Guangdong Xiongsu and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Xiongsu and Ningbo Jintian.
Diversification Opportunities for Guangdong Xiongsu and Ningbo Jintian
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Ningbo is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Xiongsu Technology and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Guangdong Xiongsu i.e., Guangdong Xiongsu and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Guangdong Xiongsu and Ningbo Jintian
Assuming the 90 days trading horizon Guangdong Xiongsu Technology is expected to generate 1.91 times more return on investment than Ningbo Jintian. However, Guangdong Xiongsu is 1.91 times more volatile than Ningbo Jintian Copper. It trades about 0.06 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.03 per unit of risk. If you would invest 611.00 in Guangdong Xiongsu Technology on October 12, 2024 and sell it today you would earn a total of 69.00 from holding Guangdong Xiongsu Technology or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Xiongsu Technology vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Guangdong Xiongsu |
| Ningbo Jintian Copper |
Guangdong Xiongsu and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Xiongsu and Ningbo Jintian
The main advantage of trading using opposite Guangdong Xiongsu and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Xiongsu position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Guangdong Xiongsu vs. Orinko Advanced Plastics | Guangdong Xiongsu vs. Chongqing Changan Automobile | Guangdong Xiongsu vs. Ningbo Fangzheng Automobile | Guangdong Xiongsu vs. GRIPM Advanced Materials |
| Ningbo Jintian vs. HeNan Splendor Science | Ningbo Jintian vs. Guangdong Xiongsu Technology | Ningbo Jintian vs. Jiujiang Shanshui Technology | Ningbo Jintian vs. Agricultural Bank of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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