Correlation Between Shantui Construction and Jiangsu Jinling
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By analyzing existing cross correlation between Shantui Construction Machinery and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Shantui Construction and Jiangsu Jinling 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 Shantui Construction with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shantui Construction and Jiangsu Jinling.
Diversification Opportunities for Shantui Construction and Jiangsu Jinling
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shantui and Jiangsu is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Shantui Construction Machinery and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Shantui Construction 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 Shantui Construction Machinery are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Shantui Construction i.e., Shantui Construction and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Shantui Construction and Jiangsu Jinling
Assuming the 90 days trading horizon Shantui Construction Machinery is expected to generate 1.58 times more return on investment than Jiangsu Jinling. However, Shantui Construction is 1.58 times more volatile than Jiangsu Jinling Sports. It trades about 0.39 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.0 per unit of risk. If you would invest 760.00 in Shantui Construction Machinery on August 25, 2024 and sell it today you would earn a total of 250.00 from holding Shantui Construction Machinery or generate 32.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shantui Construction Machinery vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Shantui Construction |
| Jiangsu Jinling Sports |
Shantui Construction and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shantui Construction and Jiangsu Jinling
The main advantage of trading using opposite Shantui Construction and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shantui Construction position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Shantui Construction vs. Chengdu Kanghua Biological | Shantui Construction vs. Beijing Wantai Biological | Shantui Construction vs. Suzhou Novoprotein Scientific | Shantui Construction vs. Aluminum Corp of |
| Jiangsu Jinling vs. Kweichow Moutai Co | Jiangsu Jinling vs. Contemporary Amperex Technology | Jiangsu Jinling vs. G bits Network Technology | Jiangsu Jinling vs. Beijing Roborock Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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