Correlation Between Jiangsu GDK and Xinjiang Beixin
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Xinjiang Beixin RoadBridge, you can compare the effects of market volatilities on Jiangsu GDK and Xinjiang Beixin 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 Jiangsu GDK with a short position of Xinjiang Beixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Xinjiang Beixin.
Diversification Opportunities for Jiangsu GDK and Xinjiang Beixin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Xinjiang Beixin RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Beixin Road and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with Xinjiang Beixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Beixin Road has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Xinjiang Beixin go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Xinjiang Beixin
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to generate 1.26 times more return on investment than Xinjiang Beixin. However, Jiangsu GDK is 1.26 times more volatile than Xinjiang Beixin RoadBridge. It trades about -0.01 of its potential returns per unit of risk. Xinjiang Beixin RoadBridge is currently generating about -0.03 per unit of risk. If you would invest 1,458 in Jiangsu GDK Biotechnology on September 20, 2024 and sell it today you would lose (20.00) from holding Jiangsu GDK Biotechnology or give up 1.37% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Xinjiang Beixin RoadBridge
Performance |
Timeline |
Jiangsu GDK Biotechnology |
Xinjiang Beixin Road |
Jiangsu GDK and Xinjiang Beixin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu GDK and Xinjiang Beixin
The main advantage of trading using opposite Jiangsu GDK and Xinjiang Beixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Xinjiang Beixin 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 Xinjiang Beixin will offset losses from the drop in Xinjiang Beixin's long position.Jiangsu GDK vs. Industrial and Commercial | Jiangsu GDK vs. China Construction Bank | Jiangsu GDK vs. Bank of China | Jiangsu GDK vs. Agricultural Bank of |
Xinjiang Beixin vs. Peoples Insurance of | Xinjiang Beixin vs. Dareway Software Co | Xinjiang Beixin vs. China Express Airlines | Xinjiang Beixin vs. Ningbo Ligong Online |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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