Correlation Between Jiangsu Yanghe and Jiangsu Jinling
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Jiangsu Yanghe and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Jiangsu Jinling.
Diversification Opportunities for Jiangsu Yanghe and Jiangsu Jinling
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Jiangsu Jinling
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Jiangsu Jinling. In addition to that, Jiangsu Yanghe is 1.05 times more volatile than Jiangsu Jinling Sports. It trades about -0.05 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.07 per unit of volatility. If you would invest 1,375 in Jiangsu Jinling Sports on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Jiangsu Jinling Sports or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Jiangsu Jinling Sports |
Jiangsu Yanghe and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Jiangsu Jinling
The main advantage of trading using opposite Jiangsu Yanghe and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Jiangsu Yanghe vs. BYD Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. Agricultural Bank of | Jiangsu Yanghe vs. Industrial and Commercial |
| Jiangsu Jinling vs. Shenzhen MYS Environmental | Jiangsu Jinling vs. AVIC Fund Management | Jiangsu Jinling vs. Shenzhen Bingchuan Network | Jiangsu Jinling vs. Penghua Shenzhen Energy |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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