Correlation Between Jiangsu GDK and Zoje Resources
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Zoje Resources Investment, you can compare the effects of market volatilities on Jiangsu GDK and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Zoje Resources.
Diversification Opportunities for Jiangsu GDK and Zoje Resources
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zoje is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Zoje Resources go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Zoje Resources
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Zoje Resources. In addition to that, Jiangsu GDK is 1.05 times more volatile than Zoje Resources Investment. It trades about -0.04 of its total potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.06 per unit of volatility. If you would invest 173.00 in Zoje Resources Investment on December 2, 2024 and sell it today you would earn a total of 70.00 from holding Zoje Resources Investment or generate 40.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Zoje Resources Investment
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Zoje Resources Investment |
Jiangsu GDK and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Zoje Resources
The main advantage of trading using opposite Jiangsu GDK and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Jiangsu GDK vs. Chengdu Spaceon Electronics | Jiangsu GDK vs. Biwin Storage Technology | Jiangsu GDK vs. YLZ Information Tech | Jiangsu GDK vs. Shenzhen SDG Information |
| Zoje Resources vs. Haima Automobile Group | Zoje Resources vs. Allwin Telecommunication Co | Zoje Resources vs. Xiangyang Automobile Bearing | Zoje Resources vs. Jilin Jlu Communication |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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