Correlation Between Hunan Investment and Jiangsu Pacific
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By analyzing existing cross correlation between Hunan Investment Group and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Jiangsu Pacific.
Diversification Opportunities for Hunan Investment and Jiangsu Pacific
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hunan and Jiangsu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Hunan Investment and Jiangsu Pacific
Assuming the 90 days trading horizon Hunan Investment Group is expected to under-perform the Jiangsu Pacific. But the stock apears to be less risky and, when comparing its historical volatility, Hunan Investment Group is 1.1 times less risky than Jiangsu Pacific. The stock trades about -0.04 of its potential returns per unit of risk. The Jiangsu Pacific Quartz is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 2,633 in Jiangsu Pacific Quartz on November 27, 2024 and sell it today you would earn a total of 36.00 from holding Jiangsu Pacific Quartz or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Hunan Investment |
| Jiangsu Pacific Quartz |
Hunan Investment and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Jiangsu Pacific
The main advantage of trading using opposite Hunan Investment and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. CareRay Digital Medical | Hunan Investment vs. Heren Health Co | Hunan Investment vs. Winner Medical Co | Hunan Investment vs. Andon Health Co |
| Jiangsu Pacific vs. Sanbo Hospital Management | Jiangsu Pacific vs. Rising Nonferrous Metals | Jiangsu Pacific vs. Yoantion Industrial IncLtd | Jiangsu Pacific vs. China Reform Health |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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