Correlation Between Rising Nonferrous and Jiangsu GDK
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By analyzing existing cross correlation between Rising Nonferrous Metals and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Rising Nonferrous 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 Rising Nonferrous with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Jiangsu GDK.
Diversification Opportunities for Rising Nonferrous and Jiangsu GDK
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rising and Jiangsu is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals 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 Rising Nonferrous 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 Rising Nonferrous Metals 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 Rising Nonferrous i.e., Rising Nonferrous and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Jiangsu GDK
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to generate 0.67 times more return on investment than Jiangsu GDK. However, Rising Nonferrous Metals is 1.49 times less risky than Jiangsu GDK. It trades about 0.01 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.04 per unit of risk. If you would invest 3,042 in Rising Nonferrous Metals on December 2, 2024 and sell it today you would lose (61.00) from holding Rising Nonferrous Metals or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Jiangsu GDK Biotechnology |
Rising Nonferrous and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Jiangsu GDK
The main advantage of trading using opposite Rising Nonferrous and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous 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.| Rising Nonferrous vs. Guangzhou Jointas Chemical | Rising Nonferrous vs. Zhejiang Yongjin Metal | Rising Nonferrous vs. Shanghai Yanpu Metal | Rising Nonferrous vs. Dymatic Chemicals |
| Jiangsu GDK vs. Chengdu Spaceon Electronics | Jiangsu GDK vs. Biwin Storage Technology | Jiangsu GDK vs. YLZ Information Tech | Jiangsu GDK vs. Shenzhen SDG Information |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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