Correlation Between Zhongshan Broad and Jiangyin Jianghua
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By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Zhongshan Broad 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 Zhongshan Broad with a short position of Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad and Jiangyin Jianghua.
Diversification Opportunities for Zhongshan Broad and Jiangyin Jianghua
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zhongshan and Jiangyin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 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 Zhongshan Broad i.e., Zhongshan Broad and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Zhongshan Broad and Jiangyin Jianghua
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to generate 1.13 times more return on investment than Jiangyin Jianghua. However, Zhongshan Broad is 1.13 times more volatile than Jiangyin Jianghua Microelectronics. It trades about 0.04 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about -0.1 per unit of risk. If you would invest 557.00 in Zhongshan Broad Ocean Motor on October 19, 2024 and sell it today you would earn a total of 11.00 from holding Zhongshan Broad Ocean Motor or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Jiangyin Jianghua |
Zhongshan Broad and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad and Jiangyin Jianghua
The main advantage of trading using opposite Zhongshan Broad and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad 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.| Zhongshan Broad vs. Shengda Mining Co | Zhongshan Broad vs. Threes Company Media | Zhongshan Broad vs. JiShi Media Co | Zhongshan Broad vs. Mango Excellent Media |
| Jiangyin Jianghua vs. Shaanxi Construction Machinery | Jiangyin Jianghua vs. Allied Machinery Co | Jiangyin Jianghua vs. Huasi Agricultural Development | Jiangyin Jianghua vs. Jiangsu Yanghe Brewery |
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 Directory module to find actively traded commodities issued by global exchanges.
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