Correlation Between Jiangsu Changfa and Duzhe Publishing
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By analyzing existing cross correlation between Jiangsu Changfa Refrigeration and Duzhe Publishing Media, you can compare the effects of market volatilities on Jiangsu Changfa and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Changfa and Duzhe Publishing.
Diversification Opportunities for Jiangsu Changfa and Duzhe Publishing
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Duzhe is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Changfa Refrigeration and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Jiangsu Changfa i.e., Jiangsu Changfa and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Jiangsu Changfa and Duzhe Publishing
Assuming the 90 days trading horizon Jiangsu Changfa is expected to generate 1.53 times less return on investment than Duzhe Publishing. But when comparing it to its historical volatility, Jiangsu Changfa Refrigeration is 1.08 times less risky than Duzhe Publishing. It trades about 0.02 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 561.00 in Duzhe Publishing Media on September 4, 2024 and sell it today you would earn a total of 79.00 from holding Duzhe Publishing Media or generate 14.08% 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. Duzhe Publishing Media
Performance |
| Timeline |
| Jiangsu Changfa Refr |
| Duzhe Publishing Media |
Jiangsu Changfa and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Changfa and Duzhe Publishing
The main advantage of trading using opposite Jiangsu Changfa and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Changfa position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing'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 |
| Duzhe Publishing vs. China Railway Materials | Duzhe Publishing vs. Hangzhou Gaoxin Rubber | Duzhe Publishing vs. Guangzhou Seagull Kitchen | Duzhe Publishing vs. Marssenger Kitchenware 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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