Correlation Between Jiangsu GDK and Changjiang Publishing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Changjiang Publishing Media, you can compare the effects of market volatilities on Jiangsu GDK and Changjiang Publishing 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 Changjiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Changjiang Publishing.
Diversification Opportunities for Jiangsu GDK and Changjiang Publishing
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Changjiang is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Changjiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Publishing 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 Changjiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Publishing has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Changjiang Publishing go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Changjiang Publishing
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Changjiang Publishing. In addition to that, Jiangsu GDK is 1.55 times more volatile than Changjiang Publishing Media. It trades about -0.28 of its total potential returns per unit of risk. Changjiang Publishing Media is currently generating about -0.04 per unit of volatility. If you would invest 887.00 in Changjiang Publishing Media on October 18, 2024 and sell it today you would lose (16.00) from holding Changjiang Publishing Media or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Changjiang Publishing Media
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Changjiang Publishing |
Jiangsu GDK and Changjiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Changjiang Publishing
The main advantage of trading using opposite Jiangsu GDK and Changjiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Changjiang Publishing 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 Changjiang Publishing will offset losses from the drop in Changjiang Publishing'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 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |