Correlation Between Jiangsu GDK and Bank of Communications
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Bank of Communications, you can compare the effects of market volatilities on Jiangsu GDK and Bank of Communications 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 Bank of Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Bank of Communications.
Diversification Opportunities for Jiangsu GDK and Bank of Communications
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Bank is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Bank of Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Communications 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 Bank of Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Communications has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Bank of Communications go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Bank of Communications
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Bank of Communications. In addition to that, Jiangsu GDK is 1.92 times more volatile than Bank of Communications. It trades about -0.47 of its total potential returns per unit of risk. Bank of Communications is currently generating about -0.04 per unit of volatility. If you would invest 750.00 in Bank of Communications on October 11, 2024 and sell it today you would lose (10.00) from holding Bank of Communications or give up 1.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Bank of Communications
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Bank of Communications |
Jiangsu GDK and Bank of Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Bank of Communications
The main advantage of trading using opposite Jiangsu GDK and Bank of Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Bank of Communications 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 Bank of Communications will offset losses from the drop in Bank of Communications' long position.| Jiangsu GDK vs. Southern PublishingMedia Co | Jiangsu GDK vs. Guangdong Xiongsu Technology | Jiangsu GDK vs. Smartgiant Technology Co | Jiangsu GDK vs. Tianshui Huatian Technology |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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