Correlation Between Ningbo Jintian and Guangdong Jingyi
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By analyzing existing cross correlation between Ningbo Jintian Copper and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Ningbo Jintian and Guangdong Jingyi 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 Ningbo Jintian with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Jintian and Guangdong Jingyi.
Diversification Opportunities for Ningbo Jintian and Guangdong Jingyi
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ningbo and Guangdong is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Jintian Copper and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Ningbo Jintian 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 Ningbo Jintian Copper are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Ningbo Jintian i.e., Ningbo Jintian and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Ningbo Jintian and Guangdong Jingyi
Assuming the 90 days trading horizon Ningbo Jintian Copper is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Ningbo Jintian Copper is 1.47 times less risky than Guangdong Jingyi. The stock trades about -0.01 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 762.00 in Guangdong Jingyi Metal on October 25, 2024 and sell it today you would lose (82.00) from holding Guangdong Jingyi Metal or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Jintian Copper vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Ningbo Jintian Copper |
| Guangdong Jingyi Metal |
Ningbo Jintian and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Jintian and Guangdong Jingyi
The main advantage of trading using opposite Ningbo Jintian and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Jintian position performs unexpectedly, Guangdong Jingyi 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 Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Ningbo Jintian vs. China Minmetals Rare | Ningbo Jintian vs. Thinkon Semiconductor Jinzhou | Ningbo Jintian vs. Rising Nonferrous Metals | Ningbo Jintian vs. Sichuan Yahua Industrial |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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