Correlation Between Jiangsu Jinling and Guangdong Marubi
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Jiangsu Jinling and Guangdong Marubi 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 Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Guangdong Marubi.
Diversification Opportunities for Jiangsu Jinling and Guangdong Marubi
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Guangdong is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Guangdong Marubi
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Guangdong Marubi. In addition to that, Jiangsu Jinling is 1.2 times more volatile than Guangdong Marubi Biotechnology. It trades about -0.02 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.01 per unit of volatility. If you would invest 3,396 in Guangdong Marubi Biotechnology on September 28, 2024 and sell it today you would lose (14.00) from holding Guangdong Marubi Biotechnology or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Guangdong Marubi Bio |
Jiangsu Jinling and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Guangdong Marubi
The main advantage of trading using opposite Jiangsu Jinling and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Guangdong Marubi 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 Marubi will offset losses from the drop in Guangdong Marubi's long position.| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. CNOOC Limited | Jiangsu Jinling vs. Ping An Insurance |
| Guangdong Marubi vs. China Nonferrous Metal | Guangdong Marubi vs. Hainan Mining Co | Guangdong Marubi vs. Gansu Yasheng Industrial | Guangdong Marubi vs. Jiangsu Jinling Sports |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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