Correlation Between Jiangsu GDK and Dongxing Sec
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Dongxing Sec Co, you can compare the effects of market volatilities on Jiangsu GDK and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Dongxing Sec.
Diversification Opportunities for Jiangsu GDK and Dongxing Sec
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Dongxing is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Dongxing Sec go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Dongxing Sec
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.17 times more return on investment than Dongxing Sec. However, Jiangsu GDK is 1.17 times more volatile than Dongxing Sec Co. It trades about 0.02 of its potential returns per unit of risk. Dongxing Sec Co is currently generating about -0.17 per unit of risk. If you would invest 1,565 in Jiangsu GDK Biotechnology on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Jiangsu GDK Biotechnology or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Dongxing Sec Co
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Dongxing Sec |
Jiangsu GDK and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Dongxing Sec
The main advantage of trading using opposite Jiangsu GDK and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial Co |
| Dongxing Sec vs. Maccura Biotechnology Co | Dongxing Sec vs. Jiangsu GDK Biotechnology | Dongxing Sec vs. Fiberhome Telecommunication Technologies | Dongxing Sec vs. Ningbo MedicalSystem 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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