Correlation Between Jiangsu GDK and Guangdong Brandmax
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Jiangsu GDK and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Guangdong Brandmax.
Diversification Opportunities for Jiangsu GDK and Guangdong Brandmax
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Guangdong is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Guangdong Brandmax
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Guangdong Brandmax. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 1.15 times less risky than Guangdong Brandmax. The stock trades about -0.03 of its potential returns per unit of risk. The Guangdong Brandmax Marketing is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 825.00 in Guangdong Brandmax Marketing on September 12, 2024 and sell it today you would earn a total of 191.00 from holding Guangdong Brandmax Marketing or generate 23.15% 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. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Guangdong Brandmax |
Jiangsu GDK and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Guangdong Brandmax
The main advantage of trading using opposite Jiangsu GDK and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax'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 |
| Guangdong Brandmax vs. Kweichow Moutai Co | Guangdong Brandmax vs. Shenzhen Mindray Bio Medical | Guangdong Brandmax vs. G bits Network Technology | Guangdong Brandmax vs. Beijing Roborock Technology |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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