Correlation Between Sportsoul and Jiangyin Jianghua
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By analyzing existing cross correlation between Sportsoul Co Ltd and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Sportsoul and Jiangyin Jianghua 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 Sportsoul with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportsoul and Jiangyin Jianghua.
Diversification Opportunities for Sportsoul and Jiangyin Jianghua
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sportsoul and Jiangyin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sportsoul Co Ltd and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua and Sportsoul 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 Sportsoul Co Ltd are associated (or correlated) with Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Sportsoul i.e., Sportsoul and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Sportsoul and Jiangyin Jianghua
Assuming the 90 days trading horizon Sportsoul is expected to generate 2.2 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Sportsoul Co Ltd is 1.17 times less risky than Jiangyin Jianghua. It trades about 0.04 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,400 in Jiangyin Jianghua Microelectronics on September 12, 2024 and sell it today you would earn a total of 465.00 from holding Jiangyin Jianghua Microelectronics or generate 33.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sportsoul Co Ltd vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Sportsoul |
| Jiangyin Jianghua |
Sportsoul and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sportsoul and Jiangyin Jianghua
The main advantage of trading using opposite Sportsoul and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sportsoul position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Sportsoul vs. Lutian Machinery Co | Sportsoul vs. PetroChina Co Ltd | Sportsoul vs. Bank of China | Sportsoul vs. Gansu Jiu Steel |
| Jiangyin Jianghua vs. Gansu Jiu Steel | Jiangyin Jianghua vs. Shandong Mining Machinery | Jiangyin Jianghua vs. Aba Chemicals Corp | Jiangyin Jianghua vs. BlueFocus Communication Group |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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