Correlation Between Gansu Yasheng and Guangdong Jingyi
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Gansu Yasheng and Guangdong Jingyi 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 Gansu Yasheng with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Guangdong Jingyi.
Diversification Opportunities for Gansu Yasheng and Guangdong Jingyi
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Gansu Yasheng 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 Gansu Yasheng Industrial are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Gansu Yasheng i.e., Gansu Yasheng and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Guangdong Jingyi
Assuming the 90 days trading horizon Gansu Yasheng is expected to generate 5.37 times less return on investment than Guangdong Jingyi. But when comparing it to its historical volatility, Gansu Yasheng Industrial is 1.7 times less risky than Guangdong Jingyi. It trades about 0.01 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 691.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 73.00 from holding Guangdong Jingyi Metal or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Guangdong Jingyi Metal |
Gansu Yasheng and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Guangdong Jingyi
The main advantage of trading using opposite Gansu Yasheng and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng position performs unexpectedly, Guangdong Jingyi 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 Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Gansu Yasheng vs. China Petroleum Chemical | Gansu Yasheng vs. PetroChina Co Ltd | Gansu Yasheng vs. China State Construction | Gansu Yasheng vs. China Railway Group |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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