Correlation Between Guangdong Jingyi and Industrial Bank
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Industrial Bank Co, you can compare the effects of market volatilities on Guangdong Jingyi and Industrial Bank 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 Industrial Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Industrial Bank.
Diversification Opportunities for Guangdong Jingyi and Industrial Bank
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guangdong and Industrial is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Industrial Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Bank 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 Industrial Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Bank has no effect on the direction of Guangdong Jingyi i.e., Guangdong Jingyi and Industrial Bank go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Industrial Bank
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.39 times more return on investment than Industrial Bank. However, Guangdong Jingyi is 1.39 times more volatile than Industrial Bank Co. It trades about 0.25 of its potential returns per unit of risk. Industrial Bank Co is currently generating about 0.07 per unit of risk. If you would invest 518.00 in Guangdong Jingyi Metal on September 24, 2024 and sell it today you would earn a total of 243.00 from holding Guangdong Jingyi Metal or generate 46.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jingyi Metal vs. Industrial Bank Co
Performance |
Timeline |
Guangdong Jingyi Metal |
Industrial Bank |
Guangdong Jingyi and Industrial Bank Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jingyi and Industrial Bank
The main advantage of trading using opposite Guangdong Jingyi and Industrial Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi position performs unexpectedly, Industrial Bank 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 Industrial Bank will offset losses from the drop in Industrial Bank's long position.Guangdong Jingyi vs. TongFu Microelectronics Co | Guangdong Jingyi vs. Qingdao Foods Co | Guangdong Jingyi vs. Unigroup Guoxin Microelectronics | Guangdong Jingyi vs. Leaguer Shenzhen MicroElectronics |
Industrial Bank vs. Kweichow Moutai Co | Industrial Bank vs. Contemporary Amperex Technology | Industrial Bank vs. G bits Network Technology | Industrial Bank vs. BYD 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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