Correlation Between Metallurgical and Guangdong Jingyi
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By analyzing existing cross correlation between Metallurgical of and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Metallurgical 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 Metallurgical with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and Guangdong Jingyi.
Diversification Opportunities for Metallurgical and Guangdong Jingyi
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Metallurgical and Guangdong is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of 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 Metallurgical 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 Metallurgical of 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 Metallurgical i.e., Metallurgical and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Metallurgical and Guangdong Jingyi
Assuming the 90 days trading horizon Metallurgical of is expected to under-perform the Guangdong Jingyi. But the stock apears to be less risky and, when comparing its historical volatility, Metallurgical of is 2.03 times less risky than Guangdong Jingyi. The stock trades about -0.23 of its potential returns per unit of risk. The Guangdong Jingyi Metal is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 701.00 in Guangdong Jingyi Metal on October 22, 2024 and sell it today you would lose (31.00) from holding Guangdong Jingyi Metal or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Metallurgical of vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Metallurgical |
| Guangdong Jingyi Metal |
Metallurgical and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Metallurgical and Guangdong Jingyi
The main advantage of trading using opposite Metallurgical and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical 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.| Metallurgical vs. Lianhe Chemical Technology | Metallurgical vs. Guizhou Chanhen Chemical | Metallurgical vs. Hubei Geoway Investment | Metallurgical vs. Kunwu Jiuding Investment |
| Guangdong Jingyi vs. ROPEOK Technology Group | Guangdong Jingyi vs. Offshore Oil Engineering | Guangdong Jingyi vs. Hainan Airlines Co | Guangdong Jingyi vs. Jiangsu Financial Leasing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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