Correlation Between Jiangnan Mould and Shanghai Suochen
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By analyzing existing cross correlation between Jiangnan Mould Plastic and Shanghai Suochen Information, you can compare the effects of market volatilities on Jiangnan Mould and Shanghai Suochen 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 Jiangnan Mould with a short position of Shanghai Suochen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangnan Mould and Shanghai Suochen.
Diversification Opportunities for Jiangnan Mould and Shanghai Suochen
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangnan and Shanghai is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangnan Mould Plastic and Shanghai Suochen Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Suochen Inf and Jiangnan Mould 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 Jiangnan Mould Plastic are associated (or correlated) with Shanghai Suochen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Suochen Inf has no effect on the direction of Jiangnan Mould i.e., Jiangnan Mould and Shanghai Suochen go up and down completely randomly.
Pair Corralation between Jiangnan Mould and Shanghai Suochen
Assuming the 90 days trading horizon Jiangnan Mould is expected to generate 6.76 times less return on investment than Shanghai Suochen. But when comparing it to its historical volatility, Jiangnan Mould Plastic is 2.46 times less risky than Shanghai Suochen. It trades about 0.08 of its potential returns per unit of risk. Shanghai Suochen Information is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 5,263 in Shanghai Suochen Information on November 3, 2024 and sell it today you would earn a total of 913.00 from holding Shanghai Suochen Information or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangnan Mould Plastic vs. Shanghai Suochen Information
Performance |
| Timeline |
| Jiangnan Mould Plastic |
| Shanghai Suochen Inf |
Jiangnan Mould and Shanghai Suochen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangnan Mould and Shanghai Suochen
The main advantage of trading using opposite Jiangnan Mould and Shanghai Suochen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangnan Mould position performs unexpectedly, Shanghai Suochen 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 Shanghai Suochen will offset losses from the drop in Shanghai Suochen's long position.| Jiangnan Mould vs. Beijing Kingsoft Office | Jiangnan Mould vs. Eastern Communications Co | Jiangnan Mould vs. Ningbo Homelink Eco iTech | Jiangnan Mould vs. Xinjiang Communications Construction |
| Shanghai Suochen vs. Tinavi Medical Technologies | Shanghai Suochen vs. Chison Medical Technologies | Shanghai Suochen vs. Zoje Resources Investment | Shanghai Suochen vs. APT Medical |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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