Correlation Between Jiangsu Jinling and Guangdong Jingyi
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Jiangsu Jinling and Guangdong Jingyi 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 Jiangsu Jinling with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Guangdong Jingyi.
Diversification Opportunities for Jiangsu Jinling and Guangdong Jingyi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Guangdong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Jiangsu Jinling 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 Jiangsu Jinling Sports are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Guangdong Jingyi
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Guangdong Jingyi. In addition to that, Jiangsu Jinling is 1.43 times more volatile than Guangdong Jingyi Metal. It trades about -0.31 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about -0.36 per unit of volatility. If you would invest 795.00 in Guangdong Jingyi Metal on October 15, 2024 and sell it today you would lose (169.00) from holding Guangdong Jingyi Metal or give up 21.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Guangdong Jingyi Metal |
Jiangsu Jinling and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Guangdong Jingyi
The main advantage of trading using opposite Jiangsu Jinling and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Jiangsu Jinling vs. Jointo Energy Investment | Jiangsu Jinling vs. Zoje Resources Investment | Jiangsu Jinling vs. RoadMain T Co | Jiangsu Jinling vs. Chahua Modern Housewares |
| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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