Correlation Between Jinzhou Port and Guangdong Jingyi
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By analyzing existing cross correlation between Jinzhou Port Co and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Jinzhou Port and Guangdong Jingyi 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 Jinzhou Port with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinzhou Port and Guangdong Jingyi.
Diversification Opportunities for Jinzhou Port and Guangdong Jingyi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinzhou and Guangdong is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jinzhou Port Co and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Jinzhou Port 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 Jinzhou Port Co are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Jinzhou Port i.e., Jinzhou Port and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Jinzhou Port and Guangdong Jingyi
Assuming the 90 days trading horizon Jinzhou Port Co is expected to under-perform the Guangdong Jingyi. In addition to that, Jinzhou Port is 1.28 times more volatile than Guangdong Jingyi Metal. It trades about -0.04 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.11 per unit of volatility. If you would invest 549.00 in Guangdong Jingyi Metal on September 3, 2024 and sell it today you would earn a total of 187.00 from holding Guangdong Jingyi Metal or generate 34.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinzhou Port Co vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Jinzhou Port |
| Guangdong Jingyi Metal |
Jinzhou Port and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinzhou Port and Guangdong Jingyi
The main advantage of trading using opposite Jinzhou Port and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinzhou Port position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Jinzhou Port vs. Zhengzhou Qianweiyangchu Food | Jinzhou Port vs. Dazhong Transportation Group | Jinzhou Port vs. New Hope Dairy | Jinzhou Port vs. HaiXin Foods Co |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Hoshine Silicon Ind |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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