Correlation Between Jiaozuo Wanfang and Beijing Shanghai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Beijing Shanghai High Speed, you can compare the effects of market volatilities on Jiaozuo Wanfang and Beijing Shanghai 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 Jiaozuo Wanfang with a short position of Beijing Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Beijing Shanghai.
Diversification Opportunities for Jiaozuo Wanfang and Beijing Shanghai
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiaozuo and Beijing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Beijing Shanghai High Speed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Shanghai High and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Beijing Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Shanghai High has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Beijing Shanghai go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Beijing Shanghai
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to under-perform the Beijing Shanghai. In addition to that, Jiaozuo Wanfang is 2.18 times more volatile than Beijing Shanghai High Speed. It trades about -0.14 of its total potential returns per unit of risk. Beijing Shanghai High Speed is currently generating about 0.2 per unit of volatility. If you would invest 543.00 in Beijing Shanghai High Speed on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Beijing Shanghai High Speed or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Beijing Shanghai High Speed
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Beijing Shanghai High |
Jiaozuo Wanfang and Beijing Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Beijing Shanghai
The main advantage of trading using opposite Jiaozuo Wanfang and Beijing Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Beijing Shanghai 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 Beijing Shanghai will offset losses from the drop in Beijing Shanghai's long position.| Jiaozuo Wanfang vs. Zijin Mining Group | Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Baoshan Iron Steel | Jiaozuo Wanfang vs. Shandong Gold Mining |
| Beijing Shanghai vs. Yonyou Auto Information | Beijing Shanghai vs. CITIC Guoan Information | Beijing Shanghai vs. Focus Media Information | Beijing Shanghai vs. Guilin Seamild Foods |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |