Correlation Between Jiangsu GDK and Bingshan Refrigeration
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Bingshan Refrigeration and, you can compare the effects of market volatilities on Jiangsu GDK and Bingshan Refrigeration 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 Bingshan Refrigeration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Bingshan Refrigeration.
Diversification Opportunities for Jiangsu GDK and Bingshan Refrigeration
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Bingshan is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Bingshan Refrigeration and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bingshan Refrigeration 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 Bingshan Refrigeration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bingshan Refrigeration has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Bingshan Refrigeration go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Bingshan Refrigeration
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Bingshan Refrigeration. In addition to that, Jiangsu GDK is 1.53 times more volatile than Bingshan Refrigeration and. It trades about -0.06 of its total potential returns per unit of risk. Bingshan Refrigeration and is currently generating about 0.04 per unit of volatility. If you would invest 171.00 in Bingshan Refrigeration and on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Bingshan Refrigeration and or generate 1.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Bingshan Refrigeration and
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Bingshan Refrigeration |
Jiangsu GDK and Bingshan Refrigeration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Bingshan Refrigeration
The main advantage of trading using opposite Jiangsu GDK and Bingshan Refrigeration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Bingshan Refrigeration 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 Bingshan Refrigeration will offset losses from the drop in Bingshan Refrigeration's long position.| Jiangsu GDK vs. Kweichow Moutai Co | Jiangsu GDK vs. G bits Network Technology | Jiangsu GDK vs. Anhui Gujing Distillery | Jiangsu GDK vs. Anhui Gujing Distillery |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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