Correlation Between Jiangsu Jinling and Guangdong Qunxing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Jinling Sports and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Jiangsu Jinling and Guangdong Qunxing 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 Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Guangdong Qunxing.
Diversification Opportunities for Jiangsu Jinling and Guangdong Qunxing
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Guangdong is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Guangdong Qunxing
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Guangdong Qunxing. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Jinling Sports is 1.02 times less risky than Guangdong Qunxing. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Qunxing Toys is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 624.00 in Guangdong Qunxing Toys on October 15, 2024 and sell it today you would earn a total of 61.00 from holding Guangdong Qunxing Toys or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Guangdong Qunxing Toys |
Jiangsu Jinling and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Guangdong Qunxing
The main advantage of trading using opposite Jiangsu Jinling and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Guangdong Qunxing 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 Qunxing will offset losses from the drop in Guangdong Qunxing'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 Qunxing vs. State Grid InformationCommunication | Guangdong Qunxing vs. Orinko Advanced Plastics | Guangdong Qunxing vs. Sanxiang Advanced Materials | Guangdong Qunxing vs. Jiangnan Mould Plastic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |