Correlation Between Niutech Environment and Jiangsu GDK
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By analyzing existing cross correlation between Niutech Environment Technology and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Niutech Environment 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 Niutech Environment with a short position of Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niutech Environment and Jiangsu GDK.
Diversification Opportunities for Niutech Environment and Jiangsu GDK
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Niutech and Jiangsu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Niutech Environment Technology 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 Niutech Environment 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 Niutech Environment Technology 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 Niutech Environment i.e., Niutech Environment and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Niutech Environment and Jiangsu GDK
Assuming the 90 days trading horizon Niutech Environment is expected to generate 5.26 times less return on investment than Jiangsu GDK. But when comparing it to its historical volatility, Niutech Environment Technology is 1.48 times less risky than Jiangsu GDK. It trades about 0.08 of its potential returns per unit of risk. Jiangsu GDK Biotechnology is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,318 in Jiangsu GDK Biotechnology on September 4, 2024 and sell it today you would earn a total of 300.00 from holding Jiangsu GDK Biotechnology or generate 22.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niutech Environment Technology vs. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Niutech Environment |
| Jiangsu GDK Biotechnology |
Niutech Environment and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niutech Environment and Jiangsu GDK
The main advantage of trading using opposite Niutech Environment and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niutech Environment 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.| Niutech Environment vs. Industrial and Commercial | Niutech Environment vs. Agricultural Bank of | Niutech Environment vs. China Construction Bank | Niutech Environment vs. Bank of China |
| Jiangsu GDK vs. Sinofibers Technology Co | Jiangsu GDK vs. Niutech Environment Technology | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Kuangda Technology Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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