Correlation Between Hunan Mendale and Jiujiang Shanshui
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Hunan Mendale 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 Hunan Mendale with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Jiujiang Shanshui.
Diversification Opportunities for Hunan Mendale and Jiujiang Shanshui
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Jiujiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Hunan Mendale 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 Hunan Mendale Hometextile 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 Hunan Mendale i.e., Hunan Mendale and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Hunan Mendale and Jiujiang Shanshui
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to under-perform the Jiujiang Shanshui. In addition to that, Hunan Mendale is 3.05 times more volatile than Jiujiang Shanshui Technology. It trades about -0.03 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.03 per unit of volatility. If you would invest 1,615 in Jiujiang Shanshui Technology on September 25, 2024 and sell it today you would lose (17.00) from holding Jiujiang Shanshui Technology or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Jiujiang Shanshui |
Hunan Mendale and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Jiujiang Shanshui
The main advantage of trading using opposite Hunan Mendale and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale 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.| Hunan Mendale vs. Cambricon Technologies Corp | Hunan Mendale vs. Loongson Technology Corp | Hunan Mendale vs. Shenzhen Fortune Trend | Hunan Mendale vs. Chongqing Road Bridge |
| Jiujiang Shanshui vs. Hunan Mendale Hometextile | Jiujiang Shanshui vs. Nanjing OLO Home | Jiujiang Shanshui vs. Sichuan Hebang Biotechnology | Jiujiang Shanshui vs. Qumei Furniture Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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