Correlation Between Jiangsu GDK and Shaanxi Meineng
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Jiangsu GDK and Shaanxi Meineng 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 Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Shaanxi Meineng.
Diversification Opportunities for Jiangsu GDK and Shaanxi Meineng
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Shaanxi is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Shaanxi Meineng
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.1 times more return on investment than Shaanxi Meineng. However, Jiangsu GDK is 1.1 times more volatile than Shaanxi Meineng Clean. It trades about 0.03 of its potential returns per unit of risk. Shaanxi Meineng Clean is currently generating about 0.0 per unit of risk. If you would invest 1,565 in Jiangsu GDK Biotechnology on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Jiangsu GDK Biotechnology or generate 1.02% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Shaanxi Meineng Clean |
Jiangsu GDK and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Shaanxi Meineng
The main advantage of trading using opposite Jiangsu GDK and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Shaanxi Meineng 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 Meineng will offset losses from the drop in Shaanxi Meineng'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 |
| Shaanxi Meineng vs. Gansu Jiu Steel | Shaanxi Meineng vs. Shandong Mining Machinery | Shaanxi Meineng vs. Aba Chemicals Corp | Shaanxi Meineng vs. BlueFocus Communication 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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