Correlation Between Shenzhen Glory and Jiujiang Shanshui
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By analyzing existing cross correlation between Shenzhen Glory Medical and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Shenzhen Glory 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 Shenzhen Glory with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Glory and Jiujiang Shanshui.
Diversification Opportunities for Shenzhen Glory and Jiujiang Shanshui
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Jiujiang is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Glory Medical and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Shenzhen Glory 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 Shenzhen Glory Medical 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 Shenzhen Glory i.e., Shenzhen Glory and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Shenzhen Glory and Jiujiang Shanshui
Assuming the 90 days trading horizon Shenzhen Glory Medical is expected to under-perform the Jiujiang Shanshui. In addition to that, Shenzhen Glory is 1.71 times more volatile than Jiujiang Shanshui Technology. It trades about -0.4 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.33 per unit of volatility. If you would invest 1,660 in Jiujiang Shanshui Technology on October 16, 2024 and sell it today you would lose (201.00) from holding Jiujiang Shanshui Technology or give up 12.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Glory Medical vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Shenzhen Glory Medical |
| Jiujiang Shanshui |
Shenzhen Glory and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Glory and Jiujiang Shanshui
The main advantage of trading using opposite Shenzhen Glory and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Glory 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.| Shenzhen Glory vs. Anhui Gujing Distillery | Shenzhen Glory vs. Western Metal Materials | Shenzhen Glory vs. Shenyang Huitian Thermal | Shenzhen Glory vs. Eastern Air Logistics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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