Correlation Between Jiangsu GDK and Beijing Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Beijing Sanyuan Foods, you can compare the effects of market volatilities on Jiangsu GDK and Beijing Sanyuan 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 Beijing Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Beijing Sanyuan.
Diversification Opportunities for Jiangsu GDK and Beijing Sanyuan
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Beijing is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Beijing Sanyuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Sanyuan Foods 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 Beijing Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Sanyuan Foods has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Beijing Sanyuan go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Beijing Sanyuan
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Beijing Sanyuan. In addition to that, Jiangsu GDK is 2.07 times more volatile than Beijing Sanyuan Foods. It trades about -0.05 of its total potential returns per unit of risk. Beijing Sanyuan Foods is currently generating about -0.02 per unit of volatility. If you would invest 489.00 in Beijing Sanyuan Foods on October 14, 2024 and sell it today you would lose (94.00) from holding Beijing Sanyuan Foods or give up 19.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Beijing Sanyuan Foods
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Beijing Sanyuan Foods |
Jiangsu GDK and Beijing Sanyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Beijing Sanyuan
The main advantage of trading using opposite Jiangsu GDK and Beijing Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Beijing Sanyuan 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 Beijing Sanyuan will offset losses from the drop in Beijing Sanyuan's long position.| Jiangsu GDK vs. Ye Chiu Metal | Jiangsu GDK vs. Ningxia Younglight Chemicals | Jiangsu GDK vs. Shandong Sanyuan Biotechnology | Jiangsu GDK vs. Shandong Polymer Biochemicals |
| Beijing Sanyuan vs. China Satellite Communications | Beijing Sanyuan vs. Jiangsu GDK Biotechnology | Beijing Sanyuan vs. Anhui Huaheng Biotechnology | Beijing Sanyuan vs. Dr Peng Telecom |
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.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |