Correlation Between Shandong Sinoglory and Jiangsu GDK
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By analyzing existing cross correlation between Shandong Sinoglory Health and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Shandong Sinoglory 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 Shandong Sinoglory with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Jiangsu GDK.
Diversification Opportunities for Shandong Sinoglory and Jiangsu GDK
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health 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 Shandong Sinoglory 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 Shandong Sinoglory Health 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 Shandong Sinoglory i.e., Shandong Sinoglory and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Jiangsu GDK
Assuming the 90 days trading horizon Shandong Sinoglory is expected to generate 1.67 times less return on investment than Jiangsu GDK. But when comparing it to its historical volatility, Shandong Sinoglory Health is 1.78 times less risky than Jiangsu GDK. It trades about 0.09 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 955.00 in Jiangsu GDK Biotechnology on October 18, 2024 and sell it today you would earn a total of 244.00 from holding Jiangsu GDK Biotechnology or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Jiangsu GDK Biotechnology |
Shandong Sinoglory and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Jiangsu GDK
The main advantage of trading using opposite Shandong Sinoglory and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory 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.| Shandong Sinoglory vs. Tianshui Huatian Technology | Shandong Sinoglory vs. Innovative Medical Management | Shandong Sinoglory vs. HUAQIN TECHNOLOGY LTD | Shandong Sinoglory vs. China Asset Management |
| Jiangsu GDK vs. Cowealth Medical China | Jiangsu GDK vs. Jiangsu Financial Leasing | Jiangsu GDK vs. Youngy Health Co | Jiangsu GDK vs. Shandong Sinoglory Health |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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