Correlation Between Jiangsu GDK and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Jiangsu GDK and Shanghai Yanpu 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 Shanghai Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Shanghai Yanpu.
Diversification Opportunities for Jiangsu GDK and Shanghai Yanpu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Shanghai is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Shanghai Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Shanghai Yanpu
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Shanghai Yanpu. In addition to that, Jiangsu GDK is 1.21 times more volatile than Shanghai Yanpu Metal. It trades about -0.03 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about 0.05 per unit of volatility. If you would invest 2,828 in Shanghai Yanpu Metal on September 12, 2024 and sell it today you would earn a total of 1,059 from holding Shanghai Yanpu Metal or generate 37.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Shanghai Yanpu Metal
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Shanghai Yanpu Metal |
Jiangsu GDK and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Shanghai Yanpu
The main advantage of trading using opposite Jiangsu GDK and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Shanghai Yanpu 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 Shanghai Yanpu will offset losses from the drop in Shanghai Yanpu'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 |
| Shanghai Yanpu vs. Lutian Machinery Co | Shanghai Yanpu vs. PetroChina Co Ltd | Shanghai Yanpu vs. Bank of China | Shanghai Yanpu vs. Gansu Jiu Steel |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |