Correlation Between Changchun High and Jiangsu Zhongtian
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By analyzing existing cross correlation between Changchun High New and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Changchun High and Jiangsu Zhongtian 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 Changchun High with a short position of Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun High and Jiangsu Zhongtian.
Diversification Opportunities for Changchun High and Jiangsu Zhongtian
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Changchun and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Changchun High New and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian and Changchun High 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 Changchun High New are associated (or correlated) with Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Changchun High i.e., Changchun High and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Changchun High and Jiangsu Zhongtian
Assuming the 90 days trading horizon Changchun High New is expected to generate 0.85 times more return on investment than Jiangsu Zhongtian. However, Changchun High New is 1.17 times less risky than Jiangsu Zhongtian. It trades about -0.59 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about -0.68 per unit of risk. If you would invest 10,460 in Changchun High New on October 14, 2024 and sell it today you would lose (1,267) from holding Changchun High New or give up 12.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun High New vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Changchun High New |
| Jiangsu Zhongtian |
Changchun High and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun High and Jiangsu Zhongtian
The main advantage of trading using opposite Changchun High and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun High position performs unexpectedly, Jiangsu Zhongtian 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 Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Changchun High vs. Tieling Newcity Investment | Changchun High vs. Zhongrun Resources Investment | Changchun High vs. Do Fluoride Chemicals Co | Changchun High vs. Weichai Heavy Machinery |
| Jiangsu Zhongtian vs. Shanghai Yaoji Playing | Jiangsu Zhongtian vs. Sinomach General Machinery | Jiangsu Zhongtian vs. Shannon Semiconductor Technology | Jiangsu Zhongtian vs. Shanghai V Test Semiconductor |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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