Correlation Between Dalian Thermal and Guangdong Jingyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Dalian Thermal Power and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Dalian Thermal 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 Dalian Thermal with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Thermal and Guangdong Jingyi.
Diversification Opportunities for Dalian Thermal and Guangdong Jingyi
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Dalian and Guangdong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Thermal Power 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 Dalian Thermal 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 Dalian Thermal Power 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 Dalian Thermal i.e., Dalian Thermal and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Dalian Thermal and Guangdong Jingyi
Assuming the 90 days trading horizon Dalian Thermal Power is expected to generate 1.39 times more return on investment than Guangdong Jingyi. However, Dalian Thermal is 1.39 times more volatile than Guangdong Jingyi Metal. It trades about 0.03 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.0 per unit of risk. If you would invest 557.00 in Dalian Thermal Power on October 16, 2024 and sell it today you would earn a total of 64.00 from holding Dalian Thermal Power or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Thermal Power vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Dalian Thermal Power |
| Guangdong Jingyi Metal |
Dalian Thermal and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Thermal and Guangdong Jingyi
The main advantage of trading using opposite Dalian Thermal and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Thermal 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.| Dalian Thermal vs. Chengdu Xingrong Investment | Dalian Thermal vs. Hubei Geoway Investment | Dalian Thermal vs. Rising Nonferrous Metals | Dalian Thermal vs. Hunan Investment Group |
| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |