Correlation Between Jiangsu Yueda and Jiangsu GDK
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Jiangsu GDK.
Diversification Opportunities for Jiangsu Yueda and Jiangsu GDK
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment 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 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 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 Jiangsu Yueda i.e., Jiangsu Yueda and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Jiangsu GDK
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.77 times more return on investment than Jiangsu GDK. However, Jiangsu Yueda Investment is 1.29 times less risky than Jiangsu GDK. It trades about 0.03 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 437.00 in Jiangsu Yueda Investment on September 12, 2024 and sell it today you would earn a total of 48.00 from holding Jiangsu Yueda Investment or generate 10.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Jiangsu GDK Biotechnology |
Jiangsu Yueda and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Jiangsu GDK
The main advantage of trading using opposite Jiangsu Yueda and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Agricultural Bank of | Jiangsu Yueda vs. Industrial and Commercial | Jiangsu Yueda vs. Bank of China | Jiangsu Yueda vs. PetroChina Co Ltd |
| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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