Correlation Between Zhejiang JIULI and Jiangsu Broadcasting
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Zhejiang JIULI and Jiangsu Broadcasting 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 Zhejiang JIULI with a short position of Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and Jiangsu Broadcasting.
Diversification Opportunities for Zhejiang JIULI and Jiangsu Broadcasting
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Jiangsu is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting and Zhejiang JIULI 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 Zhejiang JIULI Hi tech are associated (or correlated) with Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Zhejiang JIULI i.e., Zhejiang JIULI and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and Jiangsu Broadcasting
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 0.63 times more return on investment than Jiangsu Broadcasting. However, Zhejiang JIULI Hi tech is 1.6 times less risky than Jiangsu Broadcasting. It trades about -0.1 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about -0.71 per unit of risk. If you would invest 2,357 in Zhejiang JIULI Hi tech on October 16, 2024 and sell it today you would lose (49.00) from holding Zhejiang JIULI Hi tech or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| Jiangsu Broadcasting |
Zhejiang JIULI and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and Jiangsu Broadcasting
The main advantage of trading using opposite Zhejiang JIULI and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI position performs unexpectedly, Jiangsu Broadcasting 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 Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Zhejiang JIULI vs. Fiberhome Telecommunication Technologies | Zhejiang JIULI vs. Mango Excellent Media | Zhejiang JIULI vs. Ciwen Media Co | Zhejiang JIULI vs. Beijing Bewinner Communications |
| Jiangsu Broadcasting vs. Ye Chiu Metal | Jiangsu Broadcasting vs. CIMC Vehicles Co | Jiangsu Broadcasting vs. Jiangsu Xinri E Vehicle | Jiangsu Broadcasting vs. Anhui Tongguan Copper |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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