Correlation Between Jiangsu Yike and Guangzhou Dongfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yike Food and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Jiangsu Yike and Guangzhou Dongfang 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 Yike with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yike and Guangzhou Dongfang.
Diversification Opportunities for Jiangsu Yike and Guangzhou Dongfang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Guangzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yike Food and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Jiangsu Yike 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 Yike Food are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Jiangsu Yike i.e., Jiangsu Yike and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Jiangsu Yike and Guangzhou Dongfang
Assuming the 90 days trading horizon Jiangsu Yike Food is expected to generate 1.2 times more return on investment than Guangzhou Dongfang. However, Jiangsu Yike is 1.2 times more volatile than Guangzhou Dongfang Hotel. It trades about 0.12 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about 0.08 per unit of risk. If you would invest 945.00 in Jiangsu Yike Food on September 3, 2024 and sell it today you would earn a total of 458.00 from holding Jiangsu Yike Food or generate 48.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yike Food vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Jiangsu Yike Food |
| Guangzhou Dongfang Hotel |
Jiangsu Yike and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yike and Guangzhou Dongfang
The main advantage of trading using opposite Jiangsu Yike and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yike position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Jiangsu Yike vs. Beijing Wantai Biological | Jiangsu Yike vs. Aluminum Corp of | Jiangsu Yike vs. COL Digital Publishing | Jiangsu Yike vs. Shaanxi Meineng Clean |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |