Correlation Between Jiangxi JDL and Guangdong Liantai
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By analyzing existing cross correlation between Jiangxi JDL Environmental and Guangdong Liantai Environmental, you can compare the effects of market volatilities on Jiangxi JDL and Guangdong Liantai 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 Jiangxi JDL with a short position of Guangdong Liantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi JDL and Guangdong Liantai.
Diversification Opportunities for Jiangxi JDL and Guangdong Liantai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi JDL Environmental and Guangdong Liantai Environmenta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Liantai and Jiangxi JDL 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 Jiangxi JDL Environmental are associated (or correlated) with Guangdong Liantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Liantai has no effect on the direction of Jiangxi JDL i.e., Jiangxi JDL and Guangdong Liantai go up and down completely randomly.
Pair Corralation between Jiangxi JDL and Guangdong Liantai
Assuming the 90 days trading horizon Jiangxi JDL is expected to generate 1.34 times less return on investment than Guangdong Liantai. In addition to that, Jiangxi JDL is 1.0 times more volatile than Guangdong Liantai Environmental. It trades about 0.18 of its total potential returns per unit of risk. Guangdong Liantai Environmental is currently generating about 0.25 per unit of volatility. If you would invest 309.00 in Guangdong Liantai Environmental on September 12, 2024 and sell it today you would earn a total of 138.00 from holding Guangdong Liantai Environmental or generate 44.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi JDL Environmental vs. Guangdong Liantai Environmenta
Performance |
| Timeline |
| Jiangxi JDL Environmental |
| Guangdong Liantai |
Jiangxi JDL and Guangdong Liantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi JDL and Guangdong Liantai
The main advantage of trading using opposite Jiangxi JDL and Guangdong Liantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi JDL position performs unexpectedly, Guangdong Liantai 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 Liantai will offset losses from the drop in Guangdong Liantai's long position.| Jiangxi JDL vs. Qijing Machinery | Jiangxi JDL vs. Kingclean Electric Co | Jiangxi JDL vs. Gan Yuan Foods | Jiangxi JDL vs. Youyou Foods Co |
| Guangdong Liantai vs. CITIC Guoan Information | Guangdong Liantai vs. Ningbo Ligong Online | Guangdong Liantai vs. Suzhou Douson Drilling | Guangdong Liantai vs. Glodon Software 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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