Correlation Between Jiangsu GDK and Rising Nonferrous
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Rising Nonferrous Metals, you can compare the effects of market volatilities on Jiangsu GDK and Rising Nonferrous 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 Rising Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Rising Nonferrous.
Diversification Opportunities for Jiangsu GDK and Rising Nonferrous
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Rising is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Rising Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rising Nonferrous Metals 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 Rising Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rising Nonferrous Metals has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Rising Nonferrous go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Rising Nonferrous
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.29 times more return on investment than Rising Nonferrous. However, Jiangsu GDK is 1.29 times more volatile than Rising Nonferrous Metals. It trades about -0.02 of its potential returns per unit of risk. Rising Nonferrous Metals is currently generating about -0.15 per unit of risk. If you would invest 1,604 in Jiangsu GDK Biotechnology on September 13, 2024 and sell it today you would lose (34.00) from holding Jiangsu GDK Biotechnology or give up 2.12% 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. Rising Nonferrous Metals
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Rising Nonferrous Metals |
Jiangsu GDK and Rising Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Rising Nonferrous
The main advantage of trading using opposite Jiangsu GDK and Rising Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Rising Nonferrous 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 Rising Nonferrous will offset losses from the drop in Rising Nonferrous' long position.| Jiangsu GDK vs. Industrial and Commercial | Jiangsu GDK vs. China Construction Bank | Jiangsu GDK vs. Bank of China | Jiangsu GDK vs. Agricultural Bank of |
| Rising Nonferrous vs. Allwin Telecommunication Co | Rising Nonferrous vs. Lander Sports Development | Rising Nonferrous vs. Dook Media Group | Rising Nonferrous vs. JiShi Media 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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