Correlation Between Jiangsu GDK and Marssenger Kitchenware
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Jiangsu GDK and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Marssenger Kitchenware.
Diversification Opportunities for Jiangsu GDK and Marssenger Kitchenware
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Marssenger is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Marssenger Kitchenware
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Marssenger Kitchenware. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 1.69 times less risky than Marssenger Kitchenware. The stock trades about -0.33 of its potential returns per unit of risk. The Marssenger Kitchenware Co is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,543 in Marssenger Kitchenware Co on October 30, 2024 and sell it today you would lose (214.00) from holding Marssenger Kitchenware Co or give up 13.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Marssenger Kitchenware |
Jiangsu GDK and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Marssenger Kitchenware
The main advantage of trading using opposite Jiangsu GDK and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Jiangsu GDK vs. Heilongjiang Transport Development | Jiangsu GDK vs. Lander Sports Development | Jiangsu GDK vs. Guangzhou Tinci Materials | Jiangsu GDK vs. Jiangnan Mould Plastic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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