Correlation Between Zhongshan Broad and Jiangxi Lianchuang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Zhongshan Broad and Jiangxi Lianchuang 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 Zhongshan Broad with a short position of Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and Jiangxi Lianchuang.
Diversification Opportunities for Zhongshan Broad and Jiangxi Lianchuang
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongshan and Jiangxi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto and Zhongshan Broad 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 Zhongshan Broad Ocean Motor are associated (or correlated) with Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Zhongshan Broad i.e., Zhongshan Broad and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Zhongshan Broad and Jiangxi Lianchuang
Assuming the 90 days trading horizon Zhongshan Broad is expected to generate 1.44 times less return on investment than Jiangxi Lianchuang. In addition to that, Zhongshan Broad is 1.03 times more volatile than Jiangxi Lianchuang Opto electronic. It trades about 0.04 of its total potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.06 per unit of volatility. If you would invest 4,445 in Jiangxi Lianchuang Opto electronic on October 19, 2024 and sell it today you would earn a total of 149.00 from holding Jiangxi Lianchuang Opto electronic or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Jiangxi Lianchuang Opto |
Zhongshan Broad and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and Jiangxi Lianchuang
The main advantage of trading using opposite Zhongshan Broad and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Zhongshan Broad vs. Shengda Mining Co | Zhongshan Broad vs. Threes Company Media | Zhongshan Broad vs. JiShi Media Co | Zhongshan Broad vs. Mango Excellent Media |
| Jiangxi Lianchuang vs. Haima Automobile Group | Jiangxi Lianchuang vs. Hangzhou Gisway Information | Jiangxi Lianchuang vs. Anhui Jianghuai Automobile | Jiangxi Lianchuang vs. Longmaster Information Tech |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |