Correlation Between HeNan Splendor and Jiujiang Shanshui
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By analyzing existing cross correlation between HeNan Splendor Science and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on HeNan Splendor and Jiujiang Shanshui 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 HeNan Splendor with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeNan Splendor and Jiujiang Shanshui.
Diversification Opportunities for HeNan Splendor and Jiujiang Shanshui
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between HeNan and Jiujiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding HeNan Splendor Science and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and HeNan Splendor 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 HeNan Splendor Science are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of HeNan Splendor i.e., HeNan Splendor and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between HeNan Splendor and Jiujiang Shanshui
Assuming the 90 days trading horizon HeNan Splendor Science is expected to generate 1.29 times more return on investment than Jiujiang Shanshui. However, HeNan Splendor is 1.29 times more volatile than Jiujiang Shanshui Technology. It trades about 0.04 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.01 per unit of risk. If you would invest 806.00 in HeNan Splendor Science on August 30, 2024 and sell it today you would earn a total of 304.00 from holding HeNan Splendor Science or generate 37.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeNan Splendor Science vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| HeNan Splendor Science |
| Jiujiang Shanshui |
HeNan Splendor and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeNan Splendor and Jiujiang Shanshui
The main advantage of trading using opposite HeNan Splendor and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeNan Splendor position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| HeNan Splendor vs. GreenTech Environmental Co | HeNan Splendor vs. Fujian Nanwang Environment | HeNan Splendor vs. Tongxing Environmental Protection | HeNan Splendor vs. Sinocat Environmental Technology |
| Jiujiang Shanshui vs. Hangzhou Pinming Software | Jiujiang Shanshui vs. Beijing Mainstreets Investment | Jiujiang Shanshui vs. Inspur Software Co | Jiujiang Shanshui vs. China National Software |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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