Correlation Between Cinda Securities and Guangdong Jingyi
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By analyzing existing cross correlation between Cinda Securities Co and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Cinda Securities and Guangdong Jingyi 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 Cinda Securities with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Guangdong Jingyi.
Diversification Opportunities for Cinda Securities and Guangdong Jingyi
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cinda and Guangdong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Cinda Securities i.e., Cinda Securities and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Cinda Securities and Guangdong Jingyi
Assuming the 90 days trading horizon Cinda Securities is expected to generate 3.73 times less return on investment than Guangdong Jingyi. In addition to that, Cinda Securities is 1.21 times more volatile than Guangdong Jingyi Metal. It trades about 0.03 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.13 per unit of volatility. If you would invest 537.00 in Guangdong Jingyi Metal on September 24, 2024 and sell it today you would earn a total of 224.00 from holding Guangdong Jingyi Metal or generate 41.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cinda Securities Co vs. Guangdong Jingyi Metal
Performance |
Timeline |
Cinda Securities |
Guangdong Jingyi Metal |
Cinda Securities and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cinda Securities and Guangdong Jingyi
The main advantage of trading using opposite Cinda Securities and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Guangdong Jingyi 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 Jingyi will offset losses from the drop in Guangdong Jingyi's long position.Cinda Securities vs. Guangdong Jingyi Metal | Cinda Securities vs. Hengerda New Materials | Cinda Securities vs. Western Metal Materials | Cinda Securities vs. Guangzhou Tinci Materials |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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