Correlation Between Changchun and Jiujiang Shanshui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun UP Optotech and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Jiujiang Shanshui.
Diversification Opportunities for Changchun and Jiujiang Shanshui
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Jiujiang is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Changchun and Jiujiang Shanshui
Assuming the 90 days trading horizon Changchun UP Optotech is expected to generate 1.47 times more return on investment than Jiujiang Shanshui. However, Changchun is 1.47 times more volatile than Jiujiang Shanshui Technology. It trades about 0.01 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.2 per unit of risk. If you would invest 3,891 in Changchun UP Optotech on October 18, 2024 and sell it today you would earn a total of 2.00 from holding Changchun UP Optotech or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Changchun UP Optotech |
| Jiujiang Shanshui |
Changchun and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Jiujiang Shanshui
The main advantage of trading using opposite Changchun and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Tieling Newcity Investment | Changchun vs. Hubei Geoway Investment | Changchun vs. GUOMAI Culture Media | Changchun vs. Vanfund Urban Investment |
| Jiujiang Shanshui vs. Nanjing Putian Telecommunications | Jiujiang Shanshui vs. Time Publishing and | Jiujiang Shanshui vs. Xinhua Winshare Publishing | Jiujiang Shanshui vs. Ningbo Fangzheng Automobile |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |