Correlation Between Beijing Wantai and Jiangsu GDK
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By analyzing existing cross correlation between Beijing Wantai Biological and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Beijing Wantai 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 Beijing Wantai with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Jiangsu GDK.
Diversification Opportunities for Beijing Wantai and Jiangsu GDK
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Jiangsu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological 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 Beijing Wantai 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 Beijing Wantai Biological 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 Beijing Wantai i.e., Beijing Wantai and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Beijing Wantai and Jiangsu GDK
Assuming the 90 days trading horizon Beijing Wantai is expected to generate 2.22 times less return on investment than Jiangsu GDK. But when comparing it to its historical volatility, Beijing Wantai Biological is 2.09 times less risky than Jiangsu GDK. It trades about 0.04 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,466 in Jiangsu GDK Biotechnology on September 3, 2024 and sell it today you would earn a total of 202.00 from holding Jiangsu GDK Biotechnology or generate 13.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Beijing Wantai Biological |
| Jiangsu GDK Biotechnology |
Beijing Wantai and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Jiangsu GDK
The main advantage of trading using opposite Beijing Wantai and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai 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.| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
| Jiangsu GDK vs. Chengdu Kanghua Biological | Jiangsu GDK vs. Beijing Wantai Biological | Jiangsu GDK vs. Suzhou Novoprotein Scientific | Jiangsu GDK vs. Aluminum Corp of |
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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