Correlation Between Jiangxi Hengda and Blue Sail
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Blue Sail Medical, you can compare the effects of market volatilities on Jiangxi Hengda and Blue Sail 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 Blue Sail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Blue Sail.
Diversification Opportunities for Jiangxi Hengda and Blue Sail
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Blue is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Blue Sail Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Sail Medical 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 Blue Sail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Sail Medical has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Blue Sail go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Blue Sail
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Blue Sail. In addition to that, Jiangxi Hengda is 3.04 times more volatile than Blue Sail Medical. It trades about -0.35 of its total potential returns per unit of risk. Blue Sail Medical is currently generating about -0.62 per unit of volatility. If you would invest 576.00 in Blue Sail Medical on October 14, 2024 and sell it today you would lose (102.00) from holding Blue Sail Medical or give up 17.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Blue Sail Medical
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Blue Sail Medical |
Jiangxi Hengda and Blue Sail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Blue Sail
The main advantage of trading using opposite Jiangxi Hengda and Blue Sail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Blue Sail 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 Blue Sail will offset losses from the drop in Blue Sail's long position.| Jiangxi Hengda vs. Spring Airlines Co | Jiangxi Hengda vs. Juneyao Airlines | Jiangxi Hengda vs. Youyou Foods Co | Jiangxi Hengda vs. Guilin Seamild Foods |
| Blue Sail vs. Jiangxi Hengda Hi Tech | Blue Sail vs. Shanghai Shibei Hi Tech | Blue Sail vs. Fujian Newland Computer | Blue Sail vs. Tongyu Communication |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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