Correlation Between Xinjiang Baodi and Jiangsu GDK
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Jiangsu GDK.
Diversification Opportunities for Xinjiang Baodi and Jiangsu GDK
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xinjiang and Jiangsu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Jiangsu GDK
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to generate 0.79 times more return on investment than Jiangsu GDK. However, Xinjiang Baodi Mining is 1.26 times less risky than Jiangsu GDK. It trades about 0.02 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about -0.05 per unit of risk. If you would invest 604.00 in Xinjiang Baodi Mining on October 13, 2024 and sell it today you would earn a total of 67.00 from holding Xinjiang Baodi Mining or generate 11.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.72% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Jiangsu GDK Biotechnology |
Xinjiang Baodi and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Jiangsu GDK
The main advantage of trading using opposite Xinjiang Baodi and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Shannon Semiconductor Technology | Xinjiang Baodi vs. Southchip Semiconductor Technology | Xinjiang Baodi vs. Ingenic Semiconductor | Xinjiang Baodi vs. Shanghai Shibei Hi Tech |
| Jiangsu GDK vs. Ye Chiu Metal | Jiangsu GDK vs. Ningxia Younglight Chemicals | Jiangsu GDK vs. Shandong Sanyuan Biotechnology | Jiangsu GDK vs. Shandong Polymer Biochemicals |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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