Correlation Between Ye Chiu and Jiangsu GDK
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By analyzing existing cross correlation between Ye Chiu Metal and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Jiangsu GDK.
Diversification Opportunities for Ye Chiu and Jiangsu GDK
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Jiangsu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal 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 Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Ye Chiu and Jiangsu GDK
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.71 times more return on investment than Jiangsu GDK. However, Ye Chiu Metal is 1.41 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 360.00 in Ye Chiu Metal on October 13, 2024 and sell it today you would lose (127.00) from holding Ye Chiu Metal or give up 35.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Ye Chiu Metal |
| Jiangsu GDK Biotechnology |
Ye Chiu and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Jiangsu GDK
The main advantage of trading using opposite Ye Chiu and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Chongqing Shunbo Aluminum | Ye Chiu vs. Ningbo Fangzheng Automobile | Ye Chiu vs. Heilongjiang Transport Development | Ye Chiu vs. Aba Chemicals Corp |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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