Correlation Between Shaanxi Meineng and Jiangsu Changfa
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By analyzing existing cross correlation between Shaanxi Meineng Clean and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Shaanxi Meineng and Jiangsu Changfa 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 Shaanxi Meineng with a short position of Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Meineng and Jiangsu Changfa.
Diversification Opportunities for Shaanxi Meineng and Jiangsu Changfa
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shaanxi and Jiangsu is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Meineng Clean and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr and Shaanxi Meineng 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 Shaanxi Meineng Clean are associated (or correlated) with Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Shaanxi Meineng i.e., Shaanxi Meineng and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Shaanxi Meineng and Jiangsu Changfa
Assuming the 90 days trading horizon Shaanxi Meineng Clean is expected to under-perform the Jiangsu Changfa. In addition to that, Shaanxi Meineng is 1.05 times more volatile than Jiangsu Changfa Refrigeration. It trades about -0.02 of its total potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.02 per unit of volatility. If you would invest 470.00 in Jiangsu Changfa Refrigeration on September 4, 2024 and sell it today you would earn a total of 21.00 from holding Jiangsu Changfa Refrigeration or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Meineng Clean vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Shaanxi Meineng Clean |
| Jiangsu Changfa Refr |
Shaanxi Meineng and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Meineng and Jiangsu Changfa
The main advantage of trading using opposite Shaanxi Meineng and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Meineng position performs unexpectedly, Jiangsu Changfa 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 Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Shaanxi Meineng vs. Wuhan Hvsen Biotechnology | Shaanxi Meineng vs. Zhangjiagang Freetrade Science | Shaanxi Meineng vs. Jiangsu GDK Biotechnology | Shaanxi Meineng vs. Yili Chuanning Biotechnology |
| Jiangsu Changfa vs. China Construction Bank | Jiangsu Changfa vs. Qingdao Citymedia Co | Jiangsu Changfa vs. Duzhe Publishing Media | Jiangsu Changfa vs. Guosheng Financial Holding |
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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