Correlation Between Senci Electric and Guangdong Jingyi
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By analyzing existing cross correlation between Senci Electric Machinery and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Senci Electric 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 Senci Electric with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senci Electric and Guangdong Jingyi.
Diversification Opportunities for Senci Electric and Guangdong Jingyi
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Senci and Guangdong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Senci Electric Machinery 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 Senci Electric 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 Senci Electric Machinery 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 Senci Electric i.e., Senci Electric and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Senci Electric and Guangdong Jingyi
Assuming the 90 days trading horizon Senci Electric is expected to generate 7.86 times less return on investment than Guangdong Jingyi. In addition to that, Senci Electric is 1.3 times more volatile than Guangdong Jingyi Metal. It trades about 0.02 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.22 per unit of volatility. If you would invest 718.00 in Guangdong Jingyi Metal on September 12, 2024 and sell it today you would earn a total of 55.00 from holding Guangdong Jingyi Metal or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senci Electric Machinery vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Senci Electric Machinery |
| Guangdong Jingyi Metal |
Senci Electric and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senci Electric and Guangdong Jingyi
The main advantage of trading using opposite Senci Electric and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senci Electric 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.| Senci Electric vs. Agricultural Bank of | Senci Electric vs. Industrial and Commercial | Senci Electric vs. Bank of China | Senci Electric vs. PetroChina Co Ltd |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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