Correlation Between Gemdale Corp and China Building
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By analyzing existing cross correlation between Gemdale Corp and China Building Material, you can compare the effects of market volatilities on Gemdale Corp and China Building 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 Gemdale Corp with a short position of China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and China Building.
Diversification Opportunities for Gemdale Corp and China Building
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gemdale and China is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material and Gemdale Corp 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 Gemdale Corp are associated (or correlated) with China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and China Building go up and down completely randomly.
Pair Corralation between Gemdale Corp and China Building
Assuming the 90 days trading horizon Gemdale Corp is expected to generate 1.39 times more return on investment than China Building. However, Gemdale Corp is 1.39 times more volatile than China Building Material. It trades about 0.02 of its potential returns per unit of risk. China Building Material is currently generating about -0.25 per unit of risk. If you would invest 462.00 in Gemdale Corp on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Gemdale Corp or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. China Building Material
Performance |
| Timeline |
| Gemdale Corp |
| China Building Material |
Gemdale Corp and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and China Building
The main advantage of trading using opposite Gemdale Corp and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Gemdale Corp vs. Jiangsu Broadcasting Cable | Gemdale Corp vs. Sichuan Fulin Transportation | Gemdale Corp vs. Fujian Longzhou Transportation | Gemdale Corp vs. Air China Ltd |
| China Building vs. Kweichow Moutai Co | China Building vs. Contemporary Amperex Technology | China Building vs. Beijing Roborock Technology | China Building vs. BYD Co Ltd |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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