Correlation Between Guangdong Jinma and Jiangsu Pacific
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Guangdong Jinma and Jiangsu Pacific 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 Jinma with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Jiangsu Pacific.
Diversification Opportunities for Guangdong Jinma and Jiangsu Pacific
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Guangdong and Jiangsu is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Guangdong Jinma 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 Jinma Entertainment are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Jiangsu Pacific
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.26 times more return on investment than Jiangsu Pacific. However, Guangdong Jinma is 1.26 times more volatile than Jiangsu Pacific Quartz. It trades about 0.16 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.24 per unit of risk. If you would invest 1,522 in Guangdong Jinma Entertainment on October 31, 2024 and sell it today you would earn a total of 142.00 from holding Guangdong Jinma Entertainment or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Jiangsu Pacific Quartz |
Guangdong Jinma and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Jiangsu Pacific
The main advantage of trading using opposite Guangdong Jinma and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Guangdong Jinma vs. Nexchip Semiconductor Corp | Guangdong Jinma vs. Beijing Sanyuan Foods | Guangdong Jinma vs. Suzhou Oriental Semiconductor | Guangdong Jinma vs. Shantou Wanshun Package |
| Jiangsu Pacific vs. Jiangsu GDK Biotechnology | Jiangsu Pacific vs. UCloud Technology Co | Jiangsu Pacific vs. Liaoning Chengda Biotechnology | Jiangsu Pacific vs. Sichuan Hebang Biotechnology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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