Correlation Between Jiangsu Changfa and Sichuan Jinshi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Changfa Refrigeration and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Jiangsu Changfa and Sichuan Jinshi 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 Changfa with a short position of Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Changfa and Sichuan Jinshi.
Diversification Opportunities for Jiangsu Changfa and Sichuan Jinshi
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Sichuan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Changfa Refrigeration and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology and Jiangsu Changfa 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 Changfa Refrigeration are associated (or correlated) with Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Jiangsu Changfa i.e., Jiangsu Changfa and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Jiangsu Changfa and Sichuan Jinshi
Assuming the 90 days trading horizon Jiangsu Changfa Refrigeration is expected to generate 1.14 times more return on investment than Sichuan Jinshi. However, Jiangsu Changfa is 1.14 times more volatile than Sichuan Jinshi Technology. It trades about 0.03 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.01 per unit of risk. If you would invest 487.00 in Jiangsu Changfa Refrigeration on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Jiangsu Changfa Refrigeration or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Changfa Refrigeration vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Jiangsu Changfa Refr |
| Sichuan Jinshi Technology |
Jiangsu Changfa and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Changfa and Sichuan Jinshi
The main advantage of trading using opposite Jiangsu Changfa and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Changfa position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Jiangsu Changfa vs. China Construction Bank | Jiangsu Changfa vs. Qingdao Citymedia Co | Jiangsu Changfa vs. Duzhe Publishing Media | Jiangsu Changfa vs. Guosheng Financial Holding |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets |