Correlation Between Dalian Zeus and Jiujiang Shanshui
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By analyzing existing cross correlation between Dalian Zeus Entertainment and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Dalian Zeus 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 Dalian Zeus with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dalian Zeus and Jiujiang Shanshui.
Diversification Opportunities for Dalian Zeus and Jiujiang Shanshui
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dalian and Jiujiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Dalian Zeus Entertainment and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Dalian Zeus 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 Dalian Zeus Entertainment 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 Dalian Zeus i.e., Dalian Zeus and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Dalian Zeus and Jiujiang Shanshui
Assuming the 90 days trading horizon Dalian Zeus Entertainment is expected to generate 2.03 times more return on investment than Jiujiang Shanshui. However, Dalian Zeus is 2.03 times more volatile than Jiujiang Shanshui Technology. It trades about 0.5 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.05 per unit of risk. If you would invest 369.00 in Dalian Zeus Entertainment on August 28, 2024 and sell it today you would earn a total of 220.00 from holding Dalian Zeus Entertainment or generate 59.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dalian Zeus Entertainment vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Dalian Zeus Entertainment |
| Jiujiang Shanshui |
Dalian Zeus and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dalian Zeus and Jiujiang Shanshui
The main advantage of trading using opposite Dalian Zeus and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dalian Zeus 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.| Dalian Zeus vs. Ming Yang Smart | Dalian Zeus vs. 159681 | Dalian Zeus vs. 159005 | Dalian Zeus vs. Loctek Ergonomic Technology |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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