Correlation Between Jiangsu GDK and Hunan Investment
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Hunan Investment Group, you can compare the effects of market volatilities on Jiangsu GDK and Hunan Investment 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 Jiangsu GDK with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Hunan Investment.
Diversification Opportunities for Jiangsu GDK and Hunan Investment
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Hunan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Hunan Investment go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Hunan Investment
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Hunan Investment. In addition to that, Jiangsu GDK is 1.42 times more volatile than Hunan Investment Group. It trades about -0.03 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.03 per unit of volatility. If you would invest 495.00 in Hunan Investment Group on September 12, 2024 and sell it today you would earn a total of 103.00 from holding Hunan Investment Group or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Hunan Investment Group
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Hunan Investment |
Jiangsu GDK and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Hunan Investment
The main advantage of trading using opposite Jiangsu GDK and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial Co |
| Hunan Investment vs. Agricultural Bank of | Hunan Investment vs. Industrial and Commercial | Hunan Investment vs. Bank of China | Hunan Investment vs. PetroChina Co Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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