Correlation Between Chengdu Xingrong and Jiujiang Shanshui
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Chengdu Xingrong and Jiujiang Shanshui 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 Chengdu Xingrong with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Jiujiang Shanshui.
Diversification Opportunities for Chengdu Xingrong and Jiujiang Shanshui
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chengdu and Jiujiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Jiujiang Shanshui
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.78 times more return on investment than Jiujiang Shanshui. However, Chengdu Xingrong Investment is 1.29 times less risky than Jiujiang Shanshui. It trades about 0.07 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.02 per unit of risk. If you would invest 543.00 in Chengdu Xingrong Investment on September 21, 2024 and sell it today you would earn a total of 182.00 from holding Chengdu Xingrong Investment or generate 33.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Jiujiang Shanshui |
Chengdu Xingrong and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Jiujiang Shanshui
The main advantage of trading using opposite Chengdu Xingrong and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Chengdu Xingrong vs. Biwin Storage Technology | Chengdu Xingrong vs. PetroChina Co Ltd | Chengdu Xingrong vs. Industrial and Commercial | Chengdu Xingrong vs. China Construction Bank |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
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.
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