Correlation Between Guangdong Shenglu and Jiangsu Xinri
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Guangdong Shenglu and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Jiangsu Xinri.
Diversification Opportunities for Guangdong Shenglu and Jiangsu Xinri
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Jiangsu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Jiangsu Xinri
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Jiangsu Xinri. In addition to that, Guangdong Shenglu is 1.56 times more volatile than Jiangsu Xinri E Vehicle. It trades about -0.16 of its total potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about 0.0 per unit of volatility. If you would invest 1,021 in Jiangsu Xinri E Vehicle on November 3, 2024 and sell it today you would lose (4.00) from holding Jiangsu Xinri E Vehicle or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Guangdong Shenglu |
| Jiangsu Xinri E |
Guangdong Shenglu and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Jiangsu Xinri
The main advantage of trading using opposite Guangdong Shenglu and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Guangdong Shenglu vs. CIMC Vehicles Co | Guangdong Shenglu vs. Shenzhen Centralcon Investment | Guangdong Shenglu vs. Henan Shuanghui Investment | Guangdong Shenglu vs. Sportsoul Co Ltd |
| Jiangsu Xinri vs. Dongnan Electronics Co | Jiangsu Xinri vs. PKU HealthCare Corp | Jiangsu Xinri vs. Techshine Electronics Co | Jiangsu Xinri vs. Meinian Onehealth Healthcare |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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