Correlation Between Jiangsu GDK and Suzhou Douson
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Suzhou Douson Drilling, you can compare the effects of market volatilities on Jiangsu GDK and Suzhou Douson 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 Suzhou Douson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Suzhou Douson.
Diversification Opportunities for Jiangsu GDK and Suzhou Douson
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Suzhou is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Suzhou Douson Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Douson Drilling 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 Suzhou Douson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Douson Drilling has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Suzhou Douson go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Suzhou Douson
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Suzhou Douson. In addition to that, Jiangsu GDK is 1.17 times more volatile than Suzhou Douson Drilling. It trades about -0.05 of its total potential returns per unit of risk. Suzhou Douson Drilling is currently generating about 0.0 per unit of volatility. If you would invest 3,047 in Suzhou Douson Drilling on October 13, 2024 and sell it today you would lose (491.00) from holding Suzhou Douson Drilling or give up 16.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Suzhou Douson Drilling
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Suzhou Douson Drilling |
Jiangsu GDK and Suzhou Douson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Suzhou Douson
The main advantage of trading using opposite Jiangsu GDK and Suzhou Douson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Suzhou Douson 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 Suzhou Douson will offset losses from the drop in Suzhou Douson's long position.| Jiangsu GDK vs. Ye Chiu Metal | Jiangsu GDK vs. Ningxia Younglight Chemicals | Jiangsu GDK vs. Shandong Sanyuan Biotechnology | Jiangsu GDK vs. Shandong Polymer Biochemicals |
| Suzhou Douson vs. PKU HealthCare Corp | Suzhou Douson vs. Dezhan HealthCare Co | Suzhou Douson vs. Ningbo MedicalSystem Biotechnology | Suzhou Douson vs. Jiangsu GDK 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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