Correlation Between Jiangsu GDK and JiShi Media
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and JiShi Media Co, you can compare the effects of market volatilities on Jiangsu GDK and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and JiShi Media.
Diversification Opportunities for Jiangsu GDK and JiShi Media
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and JiShi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and JiShi Media go up and down completely randomly.
Pair Corralation between Jiangsu GDK and JiShi Media
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the JiShi Media. In addition to that, Jiangsu GDK is 1.02 times more volatile than JiShi Media Co. It trades about -0.05 of its total potential returns per unit of risk. JiShi Media Co is currently generating about 0.04 per unit of volatility. If you would invest 197.00 in JiShi Media Co on September 14, 2024 and sell it today you would earn a total of 57.00 from holding JiShi Media Co or generate 28.93% 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. JiShi Media Co
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| JiShi Media |
Jiangsu GDK and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and JiShi Media
The main advantage of trading using opposite Jiangsu GDK and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Jiangsu GDK vs. Gansu Jiu Steel | Jiangsu GDK vs. Hubeiyichang Transportation Group | Jiangsu GDK vs. Hainan Haiqi Transportation | Jiangsu GDK vs. Hang Xiao Steel |
| JiShi Media vs. Ningbo MedicalSystem Biotechnology | JiShi Media vs. Jiangsu GDK Biotechnology | JiShi Media vs. Changchun BCHT Biotechnology | JiShi Media vs. Postal Savings Bank |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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