Correlation Between Jiangsu GDK and China Securities
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and China Securities 800, you can compare the effects of market volatilities on Jiangsu GDK and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and China Securities.
Diversification Opportunities for Jiangsu GDK and China Securities
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and China Securities go up and down completely randomly.
Pair Corralation between Jiangsu GDK and China Securities
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the China Securities. In addition to that, Jiangsu GDK is 3.04 times more volatile than China Securities 800. It trades about -0.02 of its total potential returns per unit of risk. China Securities 800 is currently generating about 0.01 per unit of volatility. If you would invest 414,911 in China Securities 800 on September 13, 2024 and sell it today you would earn a total of 18,073 from holding China Securities 800 or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. China Securities 800
Performance |
| Timeline |
Jiangsu GDK and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Jiangsu GDK Biotechnology
Pair trading matchups for Jiangsu GDK
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Jiangsu GDK and China Securities
The main advantage of trading using opposite Jiangsu GDK and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Jiangsu GDK vs. Industrial and Commercial | Jiangsu GDK vs. China Construction Bank | Jiangsu GDK vs. Bank of China | Jiangsu GDK vs. Agricultural Bank 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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