Correlation Between Jiangsu Yanghe and Fujian Boss
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Fujian Boss Software, you can compare the effects of market volatilities on Jiangsu Yanghe and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Fujian Boss.
Diversification Opportunities for Jiangsu Yanghe and Fujian Boss
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Fujian is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Fujian Boss go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Fujian Boss
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.58 times more return on investment than Fujian Boss. However, Jiangsu Yanghe Brewery is 1.71 times less risky than Fujian Boss. It trades about -0.25 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.54 per unit of risk. If you would invest 8,564 in Jiangsu Yanghe Brewery on October 11, 2024 and sell it today you would lose (554.00) from holding Jiangsu Yanghe Brewery or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Fujian Boss Software
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Fujian Boss Software |
Jiangsu Yanghe and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Fujian Boss
The main advantage of trading using opposite Jiangsu Yanghe and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Jiangsu Yanghe vs. Jiangyin Haida Rubber | Jiangsu Yanghe vs. Southchip Semiconductor Technology | Jiangsu Yanghe vs. StarPower Semiconductor | Jiangsu Yanghe vs. Shanghai Phichem Material |
| Fujian Boss vs. Anhui Tongguan Copper | Fujian Boss vs. Shanghai CEO Environmental | Fujian Boss vs. Sanbo Hospital Management | Fujian Boss vs. Harvest Fund Management |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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