Correlation Between Jiangsu GDK and Tongling Nonferrous
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Jiangsu GDK and Tongling Nonferrous 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 Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Tongling Nonferrous.
Diversification Opportunities for Jiangsu GDK and Tongling Nonferrous
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Tongling is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous 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 Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Tongling Nonferrous
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Tongling Nonferrous. In addition to that, Jiangsu GDK is 1.73 times more volatile than Tongling Nonferrous Metals. It trades about -0.03 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.03 per unit of volatility. If you would invest 306.00 in Tongling Nonferrous Metals on September 12, 2024 and sell it today you would earn a total of 44.00 from holding Tongling Nonferrous Metals or generate 14.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Tongling Nonferrous |
Jiangsu GDK and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Tongling Nonferrous
The main advantage of trading using opposite Jiangsu GDK and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' 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 |
| Tongling Nonferrous vs. Zhengzhou Coal Mining | Tongling Nonferrous vs. JCHX Mining Management | Tongling Nonferrous vs. Xinjiang Baodi Mining | Tongling Nonferrous vs. Sanbo Hospital Management |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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