Correlation Between Jiangxi Sunshine and Gem Year
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By analyzing existing cross correlation between Jiangxi Sunshine Dairy and Gem Year Industrial Co, you can compare the effects of market volatilities on Jiangxi Sunshine and Gem Year 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 Jiangxi Sunshine with a short position of Gem Year. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Sunshine and Gem Year.
Diversification Opportunities for Jiangxi Sunshine and Gem Year
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Gem is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Sunshine Dairy and Gem Year Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gem Year Industrial and Jiangxi Sunshine 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 Jiangxi Sunshine Dairy are associated (or correlated) with Gem Year. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gem Year Industrial has no effect on the direction of Jiangxi Sunshine i.e., Jiangxi Sunshine and Gem Year go up and down completely randomly.
Pair Corralation between Jiangxi Sunshine and Gem Year
Assuming the 90 days trading horizon Jiangxi Sunshine Dairy is expected to under-perform the Gem Year. In addition to that, Jiangxi Sunshine is 1.08 times more volatile than Gem Year Industrial Co. It trades about -0.12 of its total potential returns per unit of risk. Gem Year Industrial Co is currently generating about 0.18 per unit of volatility. If you would invest 423.00 in Gem Year Industrial Co on November 3, 2024 and sell it today you would earn a total of 26.00 from holding Gem Year Industrial Co or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Sunshine Dairy vs. Gem Year Industrial Co
Performance |
| Timeline |
| Jiangxi Sunshine Dairy |
| Gem Year Industrial |
Jiangxi Sunshine and Gem Year Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Sunshine and Gem Year
The main advantage of trading using opposite Jiangxi Sunshine and Gem Year positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Sunshine position performs unexpectedly, Gem Year 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 Gem Year will offset losses from the drop in Gem Year's long position.| Jiangxi Sunshine vs. Bus Online Co | Jiangxi Sunshine vs. Holitech Technology Co | Jiangxi Sunshine vs. Gome Telecom Equipment | Jiangxi Sunshine vs. Cultural Investment Holdings |
| Gem Year vs. Guocheng Mining Co | Gem Year vs. Zhengzhou Coal Mining | Gem Year vs. Shenyang Blue Silver | Gem Year vs. Zhangjiagang Freetrade Science |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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