Correlation Between Jiangsu GDK and Ningbo MedicalSystem
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Jiangsu GDK and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Ningbo MedicalSystem.
Diversification Opportunities for Jiangsu GDK and Ningbo MedicalSystem
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Ningbo MedicalSystem
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.15 times more return on investment than Ningbo MedicalSystem. However, Jiangsu GDK is 1.15 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.01 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 5.00 from holding Jiangsu GDK Biotechnology or generate 0.32% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Ningbo MedicalSystem |
Jiangsu GDK and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Ningbo MedicalSystem
The main advantage of trading using opposite Jiangsu GDK and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem'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 |
| Ningbo MedicalSystem vs. Cultural Investment Holdings | Ningbo MedicalSystem vs. Gome Telecom Equipment | Ningbo MedicalSystem vs. Holitech Technology Co | Ningbo MedicalSystem vs. Zotye Automobile Co |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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