Correlation Between Jiangsu GDK and Niutech Environment
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Niutech Environment Technology, you can compare the effects of market volatilities on Jiangsu GDK and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Niutech Environment.
Diversification Opportunities for Jiangsu GDK and Niutech Environment
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Niutech is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Niutech Environment go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Niutech Environment
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.13 times more return on investment than Niutech Environment. However, Jiangsu GDK is 1.13 times more volatile than Niutech Environment Technology. It trades about 0.02 of its potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.02 per unit of risk. If you would invest 1,565 in Jiangsu GDK Biotechnology on September 12, 2024 and sell it today you would earn a total of 5.00 from holding Jiangsu GDK Biotechnology or generate 0.32% 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. Niutech Environment Technology
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Niutech Environment |
Jiangsu GDK and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Niutech Environment
The main advantage of trading using opposite Jiangsu GDK and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment'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 |
| Niutech Environment vs. Agricultural Bank of | Niutech Environment vs. Industrial and Commercial | Niutech Environment vs. Bank of China | Niutech Environment vs. PetroChina Co Ltd |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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