Correlation Between Jiangsu GDK and Shaanxi Energy
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Shaanxi Energy Investment, you can compare the effects of market volatilities on Jiangsu GDK and Shaanxi Energy 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 Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Shaanxi Energy.
Diversification Opportunities for Jiangsu GDK and Shaanxi Energy
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Shaanxi is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy 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 Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Shaanxi Energy go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Shaanxi Energy
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 2.21 times more return on investment than Shaanxi Energy. However, Jiangsu GDK is 2.21 times more volatile than Shaanxi Energy Investment. It trades about 0.06 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about -0.05 per unit of risk. If you would invest 1,278 in Jiangsu GDK Biotechnology on September 13, 2024 and sell it today you would earn a total of 292.00 from holding Jiangsu GDK Biotechnology or generate 22.85% 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. Shaanxi Energy Investment
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Shaanxi Energy Investment |
Jiangsu GDK and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Shaanxi Energy
The main advantage of trading using opposite Jiangsu GDK and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's 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 |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. HOB Biotech Group | Shaanxi Energy vs. Ming Yang Smart | Shaanxi Energy vs. 159681 |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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