Correlation Between Jizhong Energy and Shenzhen Bingchuan
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By analyzing existing cross correlation between Jizhong Energy Resources and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Jizhong Energy and Shenzhen Bingchuan 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 Jizhong Energy with a short position of Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jizhong Energy and Shenzhen Bingchuan.
Diversification Opportunities for Jizhong Energy and Shenzhen Bingchuan
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jizhong and Shenzhen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jizhong Energy Resources and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan and Jizhong Energy 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 Jizhong Energy Resources are associated (or correlated) with Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Jizhong Energy i.e., Jizhong Energy and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Jizhong Energy and Shenzhen Bingchuan
Assuming the 90 days trading horizon Jizhong Energy Resources is expected to under-perform the Shenzhen Bingchuan. But the stock apears to be less risky and, when comparing its historical volatility, Jizhong Energy Resources is 2.3 times less risky than Shenzhen Bingchuan. The stock trades about -0.15 of its potential returns per unit of risk. The Shenzhen Bingchuan Network is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,942 in Shenzhen Bingchuan Network on November 3, 2024 and sell it today you would earn a total of 198.00 from holding Shenzhen Bingchuan Network or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jizhong Energy Resources vs. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Jizhong Energy Resources |
| Shenzhen Bingchuan |
Jizhong Energy and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jizhong Energy and Shenzhen Bingchuan
The main advantage of trading using opposite Jizhong Energy and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jizhong Energy position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital Medical |
| Shenzhen Bingchuan vs. Lier Chemical Co | Shenzhen Bingchuan vs. Lianhe Chemical Technology | Shenzhen Bingchuan vs. Huasi Agricultural Development | Shenzhen Bingchuan vs. Tjk Machinery Tianjin |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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