Correlation Between Jiangsu GDK and Shandong Rike
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Shandong Rike Chemical, you can compare the effects of market volatilities on Jiangsu GDK and Shandong Rike 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 Shandong Rike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Shandong Rike.
Diversification Opportunities for Jiangsu GDK and Shandong Rike
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Shandong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Shandong Rike Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Rike Chemical 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 Shandong Rike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Rike Chemical has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Shandong Rike go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Shandong Rike
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 0.7 times more return on investment than Shandong Rike. However, Jiangsu GDK Biotechnology is 1.43 times less risky than Shandong Rike. It trades about -0.06 of its potential returns per unit of risk. Shandong Rike Chemical is currently generating about -0.06 per unit of risk. If you would invest 1,191 in Jiangsu GDK Biotechnology on November 3, 2024 and sell it today you would lose (39.00) from holding Jiangsu GDK Biotechnology or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Shandong Rike Chemical
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Shandong Rike Chemical |
Jiangsu GDK and Shandong Rike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Shandong Rike
The main advantage of trading using opposite Jiangsu GDK and Shandong Rike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Shandong Rike 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 Shandong Rike will offset losses from the drop in Shandong Rike'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 |
| Shandong Rike vs. Mango Excellent Media | Shandong Rike vs. JCHX Mining Management | Shandong Rike vs. Duzhe Publishing Media | Shandong Rike vs. Shaanxi Meineng Clean |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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