Correlation Between Jiangsu GDK and China State
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and China State Construction, you can compare the effects of market volatilities on Jiangsu GDK and China State 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 China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and China State.
Diversification Opportunities for Jiangsu GDK and China State
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and China is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and China State go up and down completely randomly.
Pair Corralation between Jiangsu GDK and China State
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.76 times more return on investment than China State. However, Jiangsu GDK is 1.76 times more volatile than China State Construction. It trades about 0.26 of its potential returns per unit of risk. China State Construction is currently generating about -0.01 per unit of risk. If you would invest 1,318 in Jiangsu GDK Biotechnology on September 5, 2024 and sell it today you would earn a total of 277.00 from holding Jiangsu GDK Biotechnology or generate 21.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. China State Construction
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| China State Construction |
Jiangsu GDK and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and China State
The main advantage of trading using opposite Jiangsu GDK and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Jiangsu GDK vs. Hefei Metalforming Mach | Jiangsu GDK vs. Tieling Newcity Investment | Jiangsu GDK vs. Shenzhen Centralcon Investment | Jiangsu GDK vs. Jiaozuo Wanfang Aluminum |
| China State vs. Jinhe Biotechnology Co | China State vs. Jiangsu GDK Biotechnology | China State vs. Guangdong Marubi Biotechnology | China State vs. Nanxing Furniture Machinery |
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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