Correlation Between Jiangsu Yanghe and Shenzhen Clou
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Jiangsu Yanghe and Shenzhen Clou 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 Jiangsu Yanghe with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Shenzhen Clou.
Diversification Opportunities for Jiangsu Yanghe and Shenzhen Clou
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Shenzhen Clou
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.28 times more return on investment than Shenzhen Clou. However, Jiangsu Yanghe Brewery is 3.6 times less risky than Shenzhen Clou. It trades about -0.31 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about -0.3 per unit of risk. If you would invest 8,367 in Jiangsu Yanghe Brewery on October 15, 2024 and sell it today you would lose (535.00) from holding Jiangsu Yanghe Brewery or give up 6.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Shenzhen Clou Electronics |
Jiangsu Yanghe and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Shenzhen Clou
The main advantage of trading using opposite Jiangsu Yanghe and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Jiangsu Yanghe vs. Ningbo Tech Bank Co | Jiangsu Yanghe vs. Duzhe Publishing Media | Jiangsu Yanghe vs. Chengdu B ray Media | Jiangsu Yanghe vs. JiShi Media Co |
| Shenzhen Clou vs. Anji Foodstuff Co | Shenzhen Clou vs. Shenzhen Topway Video | Shenzhen Clou vs. Jiangsu Yanghe Brewery | Shenzhen Clou vs. Shantou Wanshun Package |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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