Correlation Between Jiangsu Yueda and Guangdong Qunxing
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Jiangsu Yueda and Guangdong Qunxing 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 Jiangsu Yueda with a short position of Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Guangdong Qunxing.
Diversification Opportunities for Jiangsu Yueda and Guangdong Qunxing
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Guangdong is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Guangdong Qunxing
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.18 times less return on investment than Guangdong Qunxing. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.3 times less risky than Guangdong Qunxing. It trades about 0.02 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 659.00 in Guangdong Qunxing Toys on October 25, 2024 and sell it today you would lose (2.00) from holding Guangdong Qunxing Toys or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Guangdong Qunxing Toys |
Jiangsu Yueda and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Guangdong Qunxing
The main advantage of trading using opposite Jiangsu Yueda and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Guangdong Qunxing 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 Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
| Guangdong Qunxing vs. PetroChina Co Ltd | Guangdong Qunxing vs. Gansu Jiu Steel | Guangdong Qunxing vs. Ming Yang Smart | Guangdong Qunxing vs. Aba Chemicals Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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