Correlation Between Guangdong Shenglu and Jiujiang Shanshui
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Jiujiang Shanshui.
Diversification Opportunities for Guangdong Shenglu and Jiujiang Shanshui
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jiujiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Jiujiang Shanshui
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Jiujiang Shanshui. In addition to that, Guangdong Shenglu is 1.39 times more volatile than Jiujiang Shanshui Technology. It trades about -0.01 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.01 per unit of volatility. If you would invest 1,585 in Jiujiang Shanshui Technology on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Jiujiang Shanshui Technology or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Guangdong Shenglu |
| Jiujiang Shanshui |
Guangdong Shenglu and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Jiujiang Shanshui
The main advantage of trading using opposite Guangdong Shenglu and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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