Correlation Between Guangdong Jingyi and Jiangsu Broadcasting
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Guangdong Jingyi and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Jiangsu Broadcasting.
Diversification Opportunities for Guangdong Jingyi and Jiangsu Broadcasting
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jiangsu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Jiangsu Broadcasting
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 0.97 times more return on investment than Jiangsu Broadcasting. However, Guangdong Jingyi Metal is 1.03 times less risky than Jiangsu Broadcasting. It trades about 0.25 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.19 per unit of risk. If you would invest 506.00 in Guangdong Jingyi Metal on September 21, 2024 and sell it today you would earn a total of 238.00 from holding Guangdong Jingyi Metal or generate 47.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Jiangsu Broadcasting Cable
Performance |
Timeline |
Guangdong Jingyi Metal |
Jiangsu Broadcasting |
Guangdong Jingyi and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Jiangsu Broadcasting
The main advantage of trading using opposite Guangdong Jingyi and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.Guangdong Jingyi vs. Shenyang Chemical Industry | Guangdong Jingyi vs. Qingdao Foods Co | Guangdong Jingyi vs. Guangzhou Jointas Chemical | Guangdong Jingyi vs. HaiXin Foods Co |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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