Correlation Between Rongan Property and Jiangsu Flowers
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rongan Property Co and Jiangsu Flowers King, you can compare the effects of market volatilities on Rongan Property and Jiangsu Flowers 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 Rongan Property with a short position of Jiangsu Flowers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongan Property and Jiangsu Flowers.
Diversification Opportunities for Rongan Property and Jiangsu Flowers
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rongan and Jiangsu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Rongan Property Co and Jiangsu Flowers King in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Flowers King and Rongan Property 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 Rongan Property Co are associated (or correlated) with Jiangsu Flowers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Flowers King has no effect on the direction of Rongan Property i.e., Rongan Property and Jiangsu Flowers go up and down completely randomly.
Pair Corralation between Rongan Property and Jiangsu Flowers
Assuming the 90 days trading horizon Rongan Property Co is expected to under-perform the Jiangsu Flowers. But the stock apears to be less risky and, when comparing its historical volatility, Rongan Property Co is 5.9 times less risky than Jiangsu Flowers. The stock trades about -0.31 of its potential returns per unit of risk. The Jiangsu Flowers King is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,332 in Jiangsu Flowers King on October 25, 2024 and sell it today you would lose (165.00) from holding Jiangsu Flowers King or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongan Property Co vs. Jiangsu Flowers King
Performance |
| Timeline |
| Rongan Property |
| Jiangsu Flowers King |
Rongan Property and Jiangsu Flowers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongan Property and Jiangsu Flowers
The main advantage of trading using opposite Rongan Property and Jiangsu Flowers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongan Property position performs unexpectedly, Jiangsu Flowers 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 Flowers will offset losses from the drop in Jiangsu Flowers' long position.| Rongan Property vs. Sinomach Automobile Co | Rongan Property vs. Haima Automobile Group | Rongan Property vs. Ningbo Fangzheng Automobile | Rongan Property vs. Chongqing Changan Automobile |
| Jiangsu Flowers vs. Servyou Software Group | Jiangsu Flowers vs. Guotai Epoint Software | Jiangsu Flowers vs. Linewell Software Co | Jiangsu Flowers vs. China Building Material |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |