Correlation Between Jiangsu GDK and Chongqing Sulian
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Jiangsu GDK and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Chongqing Sulian.
Diversification Opportunities for Jiangsu GDK and Chongqing Sulian
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Chongqing is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Chongqing Sulian
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Chongqing Sulian. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 1.72 times less risky than Chongqing Sulian. The stock trades about -0.33 of its potential returns per unit of risk. The Chongqing Sulian Plastic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,748 in Chongqing Sulian Plastic on October 30, 2024 and sell it today you would earn a total of 134.00 from holding Chongqing Sulian Plastic or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Chongqing Sulian Plastic |
Jiangsu GDK and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Chongqing Sulian
The main advantage of trading using opposite Jiangsu GDK and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian'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 |
| Chongqing Sulian vs. Kweichow Moutai Co | Chongqing Sulian vs. Jiangsu Pacific Quartz | Chongqing Sulian vs. Shenzhen Transsion Holdings | Chongqing Sulian 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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