Correlation Between Jiangsu GDK and Jiangsu Yueda
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Jiangsu GDK and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Jiangsu Yueda.
Diversification Opportunities for Jiangsu GDK and Jiangsu Yueda
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Jiangsu Yueda
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.74 times more return on investment than Jiangsu Yueda. However, Jiangsu GDK is 1.74 times more volatile than Jiangsu Yueda Investment. It trades about 0.06 of its potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.08 per unit of risk. If you would invest 1,278 in Jiangsu GDK Biotechnology on September 13, 2024 and sell it today you would earn a total of 292.00 from holding Jiangsu GDK Biotechnology or generate 22.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Jiangsu Yueda Investment |
Jiangsu GDK and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Jiangsu Yueda
The main advantage of trading using opposite Jiangsu GDK and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda's 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 |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda vs. Bank of China |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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