Correlation Between Jiangxi Hengda and Ciwen Media
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Ciwen Media Co, you can compare the effects of market volatilities on Jiangxi Hengda and Ciwen Media 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 Jiangxi Hengda with a short position of Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Ciwen Media.
Diversification Opportunities for Jiangxi Hengda and Ciwen Media
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Ciwen is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Ciwen Media go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Ciwen Media
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.32 times more return on investment than Ciwen Media. However, Jiangxi Hengda is 1.32 times more volatile than Ciwen Media Co. It trades about -0.3 of its potential returns per unit of risk. Ciwen Media Co is currently generating about -0.4 per unit of risk. If you would invest 643.00 in Jiangxi Hengda Hi Tech on October 16, 2024 and sell it today you would lose (171.00) from holding Jiangxi Hengda Hi Tech or give up 26.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Ciwen Media Co
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Ciwen Media |
Jiangxi Hengda and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Ciwen Media
The main advantage of trading using opposite Jiangxi Hengda and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| Jiangxi Hengda vs. Nanxing Furniture Machinery | Jiangxi Hengda vs. Zhejiang Yinlun Machinery | Jiangxi Hengda vs. Servyou Software Group | Jiangxi Hengda vs. Keda Clean Energy |
| Ciwen Media vs. Kweichow Moutai Co | Ciwen Media vs. Contemporary Amperex Technology | Ciwen Media vs. G bits Network Technology | Ciwen Media vs. Beijing Roborock Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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