Correlation Between Shenzhen Centralcon and Jiangsu Pacific
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By analyzing existing cross correlation between Shenzhen Centralcon Investment and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Shenzhen Centralcon and Jiangsu Pacific 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 Shenzhen Centralcon with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Centralcon and Jiangsu Pacific.
Diversification Opportunities for Shenzhen Centralcon and Jiangsu Pacific
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Centralcon Investment and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Shenzhen Centralcon 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 Shenzhen Centralcon Investment are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Shenzhen Centralcon i.e., Shenzhen Centralcon and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Shenzhen Centralcon and Jiangsu Pacific
Assuming the 90 days trading horizon Shenzhen Centralcon Investment is expected to generate 0.92 times more return on investment than Jiangsu Pacific. However, Shenzhen Centralcon Investment is 1.09 times less risky than Jiangsu Pacific. It trades about 0.2 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about 0.1 per unit of risk. If you would invest 352.00 in Shenzhen Centralcon Investment on August 29, 2024 and sell it today you would earn a total of 163.00 from holding Shenzhen Centralcon Investment or generate 46.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Centralcon Investment vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Shenzhen Centralcon |
| Jiangsu Pacific Quartz |
Shenzhen Centralcon and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Centralcon and Jiangsu Pacific
The main advantage of trading using opposite Shenzhen Centralcon and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Centralcon position performs unexpectedly, Jiangsu Pacific 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 Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Shenzhen Centralcon vs. Cambricon Technologies Corp | Shenzhen Centralcon vs. Empyrean Technology Co | Shenzhen Centralcon vs. Kuang Chi Technologies | Shenzhen Centralcon vs. Gansu Jiu Steel |
| Jiangsu Pacific vs. Guangzhou KingTeller Technology | Jiangsu Pacific vs. Chengdu Xingrong Investment | Jiangsu Pacific vs. Western Superconducting Tech | Jiangsu Pacific vs. Hunan Investment Group |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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