Correlation Between Guangdong Brandmax and Jiangsu GDK
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Guangdong Brandmax and Jiangsu GDK 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 Brandmax with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Jiangsu GDK.
Diversification Opportunities for Guangdong Brandmax and Jiangsu GDK
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jiangsu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology and Guangdong Brandmax 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 Brandmax Marketing are associated (or correlated) with Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Jiangsu GDK
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.15 times more return on investment than Jiangsu GDK. However, Guangdong Brandmax is 1.15 times more volatile than Jiangsu GDK Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 825.00 in Guangdong Brandmax Marketing on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Guangdong Brandmax Marketing or generate 23.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Guangdong Brandmax |
| Jiangsu GDK Biotechnology |
Guangdong Brandmax and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Jiangsu GDK
The main advantage of trading using opposite Guangdong Brandmax and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, Jiangsu GDK 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 GDK will offset losses from the drop in Jiangsu GDK's long position.| Guangdong Brandmax vs. Kweichow Moutai Co | Guangdong Brandmax vs. Shenzhen Mindray Bio Medical | Guangdong Brandmax vs. G bits Network Technology | Guangdong Brandmax vs. Beijing Roborock Technology |
| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial Co |
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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