Correlation Between Guangxi Guiguan and Jinzai Food
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By analyzing existing cross correlation between Guangxi Guiguan Electric and Jinzai Food Group, you can compare the effects of market volatilities on Guangxi Guiguan and Jinzai Food 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 Guangxi Guiguan with a short position of Jinzai Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangxi Guiguan and Jinzai Food.
Diversification Opportunities for Guangxi Guiguan and Jinzai Food
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangxi and Jinzai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Guangxi Guiguan Electric and Jinzai Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinzai Food Group and Guangxi Guiguan 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 Guangxi Guiguan Electric are associated (or correlated) with Jinzai Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinzai Food Group has no effect on the direction of Guangxi Guiguan i.e., Guangxi Guiguan and Jinzai Food go up and down completely randomly.
Pair Corralation between Guangxi Guiguan and Jinzai Food
Assuming the 90 days trading horizon Guangxi Guiguan Electric is expected to generate 0.61 times more return on investment than Jinzai Food. However, Guangxi Guiguan Electric is 1.65 times less risky than Jinzai Food. It trades about -0.17 of its potential returns per unit of risk. Jinzai Food Group is currently generating about -0.32 per unit of risk. If you would invest 666.00 in Guangxi Guiguan Electric on November 3, 2024 and sell it today you would lose (30.00) from holding Guangxi Guiguan Electric or give up 4.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangxi Guiguan Electric vs. Jinzai Food Group
Performance |
| Timeline |
| Guangxi Guiguan Electric |
| Jinzai Food Group |
Guangxi Guiguan and Jinzai Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangxi Guiguan and Jinzai Food
The main advantage of trading using opposite Guangxi Guiguan and Jinzai Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangxi Guiguan position performs unexpectedly, Jinzai Food 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 Jinzai Food will offset losses from the drop in Jinzai Food's long position.| Guangxi Guiguan vs. Linewell Software Co | Guangxi Guiguan vs. Shandong Polymer Biochemicals | Guangxi Guiguan vs. Aba Chemicals Corp | Guangxi Guiguan vs. JCHX Mining Management |
| Jinzai Food vs. Gan Yuan Foods | Jinzai Food vs. Xinjiang Communications Construction | Jinzai Food vs. Nanjing Putian Telecommunications | Jinzai Food vs. Eastern Communications 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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