Correlation Between Sichuan Yahua and Jiangsu Jinling
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Sichuan Yahua and Jiangsu Jinling 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 Sichuan Yahua with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Jiangsu Jinling.
Diversification Opportunities for Sichuan Yahua and Jiangsu Jinling
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and Jiangsu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Jiangsu Jinling
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 0.48 times more return on investment than Jiangsu Jinling. However, Sichuan Yahua Industrial is 2.09 times less risky than Jiangsu Jinling. It trades about -0.21 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.31 per unit of risk. If you would invest 1,285 in Sichuan Yahua Industrial on October 15, 2024 and sell it today you would lose (117.00) from holding Sichuan Yahua Industrial or give up 9.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Jiangsu Jinling Sports |
Sichuan Yahua and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Jiangsu Jinling
The main advantage of trading using opposite Sichuan Yahua and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Sichuan Yahua vs. Shenzhen Bioeasy Biotechnology | Sichuan Yahua vs. Heilongjiang Publishing Media | Sichuan Yahua vs. Southern PublishingMedia Co | Sichuan Yahua vs. Changchun BCHT Biotechnology |
| Jiangsu Jinling vs. Jointo Energy Investment | Jiangsu Jinling vs. Zoje Resources Investment | Jiangsu Jinling vs. RoadMain T Co | Jiangsu Jinling vs. Chahua Modern Housewares |
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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