Correlation Between Jiangsu GDK and Yunnan Xiyi
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Jiangsu GDK and Yunnan Xiyi 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 Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Yunnan Xiyi.
Diversification Opportunities for Jiangsu GDK and Yunnan Xiyi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Yunnan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial 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 Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Yunnan Xiyi
Assuming the 90 days trading horizon Jiangsu GDK is expected to generate 1.29 times less return on investment than Yunnan Xiyi. In addition to that, Jiangsu GDK is 1.48 times more volatile than Yunnan Xiyi Industrial. It trades about 0.05 of its total potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about 0.09 per unit of volatility. If you would invest 962.00 in Yunnan Xiyi Industrial on September 3, 2024 and sell it today you would earn a total of 291.00 from holding Yunnan Xiyi Industrial or generate 30.25% 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. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Yunnan Xiyi Industrial |
Jiangsu GDK and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Yunnan Xiyi
The main advantage of trading using opposite Jiangsu GDK and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Jiangsu GDK vs. Chengdu Kanghua Biological | Jiangsu GDK vs. Beijing Wantai Biological | Jiangsu GDK vs. Suzhou Novoprotein Scientific | Jiangsu GDK vs. Aluminum Corp of |
| Yunnan Xiyi vs. Anhui Huilong Agricultural | Yunnan Xiyi vs. Huasi Agricultural Development | Yunnan Xiyi vs. Shantui Construction Machinery | Yunnan Xiyi vs. Sinomach General Machinery |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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