Correlation Between Jiangsu GDK and Kangxin New
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Kangxin New Materials, you can compare the effects of market volatilities on Jiangsu GDK and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Kangxin New.
Diversification Opportunities for Jiangsu GDK and Kangxin New
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Kangxin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Kangxin New go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Kangxin New
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.08 times more return on investment than Kangxin New. However, Jiangsu GDK is 1.08 times more volatile than Kangxin New Materials. It trades about -0.35 of its potential returns per unit of risk. Kangxin New Materials is currently generating about -0.49 per unit of risk. If you would invest 1,558 in Jiangsu GDK Biotechnology on October 17, 2024 and sell it today you would lose (359.00) from holding Jiangsu GDK Biotechnology or give up 23.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Kangxin New Materials
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Kangxin New Materials |
Jiangsu GDK and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Kangxin New
The main advantage of trading using opposite Jiangsu GDK and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New's long position.| Jiangsu GDK vs. Cowealth Medical China | Jiangsu GDK vs. Jiangsu Financial Leasing | Jiangsu GDK vs. Youngy Health Co | Jiangsu GDK vs. Shandong Sinoglory Health |
| Kangxin New vs. Fujian Wanchen Biotechnology | Kangxin New vs. State Grid InformationCommunication | Kangxin New vs. Anhui Jianghuai Automobile | Kangxin New vs. Jiangsu GDK Biotechnology |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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