Correlation Between Jiangyin Jianghua and Guangzhou Seagull
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By analyzing existing cross correlation between Jiangyin Jianghua Microelectronics and Guangzhou Seagull Kitchen, you can compare the effects of market volatilities on Jiangyin Jianghua and Guangzhou Seagull 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 Jiangyin Jianghua with a short position of Guangzhou Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangyin Jianghua and Guangzhou Seagull.
Diversification Opportunities for Jiangyin Jianghua and Guangzhou Seagull
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangyin and Guangzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiangyin Jianghua Microelectro and Guangzhou Seagull Kitchen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Seagull Kitchen and Jiangyin Jianghua 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 Jiangyin Jianghua Microelectronics are associated (or correlated) with Guangzhou Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Seagull Kitchen has no effect on the direction of Jiangyin Jianghua i.e., Jiangyin Jianghua and Guangzhou Seagull go up and down completely randomly.
Pair Corralation between Jiangyin Jianghua and Guangzhou Seagull
Assuming the 90 days trading horizon Jiangyin Jianghua Microelectronics is expected to generate 1.26 times more return on investment than Guangzhou Seagull. However, Jiangyin Jianghua is 1.26 times more volatile than Guangzhou Seagull Kitchen. It trades about 0.05 of its potential returns per unit of risk. Guangzhou Seagull Kitchen is currently generating about 0.02 per unit of risk. If you would invest 1,419 in Jiangyin Jianghua Microelectronics on October 15, 2024 and sell it today you would earn a total of 101.00 from holding Jiangyin Jianghua Microelectronics or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangyin Jianghua Microelectro vs. Guangzhou Seagull Kitchen
Performance |
| Timeline |
| Jiangyin Jianghua |
| Guangzhou Seagull Kitchen |
Jiangyin Jianghua and Guangzhou Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangyin Jianghua and Guangzhou Seagull
The main advantage of trading using opposite Jiangyin Jianghua and Guangzhou Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangyin Jianghua position performs unexpectedly, Guangzhou Seagull 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 Guangzhou Seagull will offset losses from the drop in Guangzhou Seagull's long position.| Jiangyin Jianghua vs. Anhui Jinhe Industrial | Jiangyin Jianghua vs. Lutian Machinery Co | Jiangyin Jianghua vs. Sichuan Yahua Industrial | Jiangyin Jianghua vs. Universal Scientific Industrial |
| Guangzhou Seagull vs. Hainan Haiqi Transportation | Guangzhou Seagull vs. Xinjiang Baodi Mining | Guangzhou Seagull vs. Hunan TV Broadcast | Guangzhou Seagull vs. Sichuan Fulin Transportation |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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