Correlation Between Guangdong Jingyi and Shanghai Yaoji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jingyi Metal and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Guangdong Jingyi and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Shanghai Yaoji.
Diversification Opportunities for Guangdong Jingyi and Shanghai Yaoji
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Shanghai is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Shanghai Yaoji
Assuming the 90 days trading horizon Guangdong Jingyi is expected to generate 4.75 times less return on investment than Shanghai Yaoji. But when comparing it to its historical volatility, Guangdong Jingyi Metal is 1.31 times less risky than Shanghai Yaoji. It trades about 0.02 of its potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,431 in Shanghai Yaoji Playing on September 26, 2024 and sell it today you would earn a total of 1,341 from holding Shanghai Yaoji Playing or generate 93.71% 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. Shanghai Yaoji Playing
Performance |
Timeline |
Guangdong Jingyi Metal |
Shanghai Yaoji Playing |
Guangdong Jingyi and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Shanghai Yaoji
The main advantage of trading using opposite Guangdong Jingyi and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Shanghai Yaoji 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 Yaoji will offset losses from the drop in Shanghai Yaoji'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 |
Shanghai Yaoji vs. Guangdong Jingyi Metal | Shanghai Yaoji vs. Chengtun Mining Group | Shanghai Yaoji vs. Pengxin International Mining | Shanghai Yaoji vs. Gem Year Industrial 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume |