Correlation Between Zhangjiagang Freetrade and Jiangsu GDK
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Jiangsu GDK.
Diversification Opportunities for Zhangjiagang Freetrade and Jiangsu GDK
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhangjiagang and Jiangsu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Jiangsu GDK
Assuming the 90 days trading horizon Zhangjiagang Freetrade is expected to generate 1.24 times less return on investment than Jiangsu GDK. But when comparing it to its historical volatility, Zhangjiagang Freetrade Science is 1.95 times less risky than Jiangsu GDK. It trades about 0.09 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,278 in Jiangsu GDK Biotechnology on September 13, 2024 and sell it today you would earn a total of 292.00 from holding Jiangsu GDK Biotechnology or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| Jiangsu GDK Biotechnology |
Zhangjiagang Freetrade and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Jiangsu GDK
The main advantage of trading using opposite Zhangjiagang Freetrade and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade 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.| Zhangjiagang Freetrade vs. Shandong Iron and | Zhangjiagang Freetrade vs. Anhui Jianghuai Automobile | Zhangjiagang Freetrade vs. Xiangyang Automobile Bearing | Zhangjiagang Freetrade vs. Anyang Iron Steel |
| Jiangsu GDK vs. Industrial and Commercial | Jiangsu GDK vs. China Construction Bank | Jiangsu GDK vs. Bank of China | Jiangsu GDK vs. Agricultural Bank of |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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