Correlation Between Jiangsu GDK and Namchow Food
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Namchow Food Group, you can compare the effects of market volatilities on Jiangsu GDK and Namchow Food 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 Namchow Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Namchow Food.
Diversification Opportunities for Jiangsu GDK and Namchow Food
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Namchow is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Namchow Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Namchow Food Group 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 Namchow Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Namchow Food Group has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Namchow Food go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Namchow Food
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Namchow Food. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu GDK Biotechnology is 1.28 times less risky than Namchow Food. The stock trades about -0.19 of its potential returns per unit of risk. The Namchow Food Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,745 in Namchow Food Group on October 22, 2024 and sell it today you would earn a total of 30.00 from holding Namchow Food Group or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Namchow Food Group
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Namchow Food Group |
Jiangsu GDK and Namchow Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Namchow Food
The main advantage of trading using opposite Jiangsu GDK and Namchow Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Namchow Food 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 Namchow Food will offset losses from the drop in Namchow Food's long position.| Jiangsu GDK vs. Zhejiang JIULI Hi tech | Jiangsu GDK vs. Harbin Air Conditioning | Jiangsu GDK vs. Weichai Heavy Machinery | Jiangsu GDK vs. FSPG Hi Tech Co |
| Namchow Food vs. Sichuan Fulin Transportation | Namchow Food vs. Xinjiang Baodi Mining | Namchow Food vs. China Sports Industry | Namchow Food vs. Anhui Tongguan Copper |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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