Correlation Between Guangdong Jingyi and Guangdong Shenglu
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Guangdong Jingyi and Guangdong Shenglu 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 Guangdong Jingyi with a short position of Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Guangdong Shenglu.
Diversification Opportunities for Guangdong Jingyi and Guangdong Shenglu
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Guangdong is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu and Guangdong Jingyi 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 Guangdong Jingyi Metal are associated (or correlated) with Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Guangdong Shenglu
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.93 times more return on investment than Guangdong Shenglu. However, Guangdong Jingyi Metal is 1.07 times less risky than Guangdong Shenglu. It trades about 0.02 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.02 per unit of risk. If you would invest 681.00 in Guangdong Jingyi Metal on September 26, 2024 and sell it today you would earn a total of 15.00 from holding Guangdong Jingyi Metal or generate 2.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Guangdong Shenglu Telecommunic
Performance |
Timeline |
Guangdong Jingyi Metal |
Guangdong Shenglu |
Guangdong Jingyi and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Guangdong Shenglu
The main advantage of trading using opposite Guangdong Jingyi and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Guangdong Shenglu 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 Shenglu will offset losses from the drop in Guangdong Shenglu's long position.Guangdong Jingyi vs. Guangzhou Jinyi Media | Guangdong Jingyi vs. Heilongjiang Publishing Media | Guangdong Jingyi vs. Dook Media Group | Guangdong Jingyi vs. GRIPM Advanced Materials |
Guangdong Shenglu vs. Dongfeng Automobile Co | Guangdong Shenglu vs. China Mobile Limited | Guangdong Shenglu vs. Railway Signal Communication | Guangdong Shenglu vs. Dareway Software Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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