Correlation Between Guangdong Jinming and Huasi Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Jinming Machinery and Huasi Agricultural Development, you can compare the effects of market volatilities on Guangdong Jinming and Huasi Agricultural 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 Jinming with a short position of Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinming and Huasi Agricultural.
Diversification Opportunities for Guangdong Jinming and Huasi Agricultural
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Huasi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinming Machinery and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural and Guangdong Jinming 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 Jinming Machinery are associated (or correlated) with Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Guangdong Jinming i.e., Guangdong Jinming and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Guangdong Jinming and Huasi Agricultural
Assuming the 90 days trading horizon Guangdong Jinming Machinery is expected to generate 1.27 times more return on investment than Huasi Agricultural. However, Guangdong Jinming is 1.27 times more volatile than Huasi Agricultural Development. It trades about 0.08 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.08 per unit of risk. If you would invest 594.00 in Guangdong Jinming Machinery on December 10, 2024 and sell it today you would earn a total of 19.00 from holding Guangdong Jinming Machinery or generate 3.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Jinming Machinery vs. Huasi Agricultural Development
Performance |
Timeline |
Guangdong Jinming |
Huasi Agricultural |
Guangdong Jinming and Huasi Agricultural Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Jinming and Huasi Agricultural
The main advantage of trading using opposite Guangdong Jinming and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinming position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.Guangdong Jinming vs. Offshore Oil Engineering | Guangdong Jinming vs. Queclink Wireless Solutions | Guangdong Jinming vs. Peoples Insurance of | Guangdong Jinming vs. Unigroup Guoxin Microelectronics |
Huasi Agricultural vs. Shenyang Blue Silver | Huasi Agricultural vs. Baoding Dongli Machinery | Huasi Agricultural vs. Tjk Machinery Tianjin | Huasi Agricultural vs. Shandong Mining Machinery |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
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 | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |