Correlation Between Jiangxi Hengda and Shenyang Blue
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Shenyang Blue Silver, you can compare the effects of market volatilities on Jiangxi Hengda and Shenyang Blue 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 Shenyang Blue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Shenyang Blue.
Diversification Opportunities for Jiangxi Hengda and Shenyang Blue
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangxi and Shenyang is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Shenyang Blue Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Blue Silver 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 Shenyang Blue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Blue Silver has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Shenyang Blue go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Shenyang Blue
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Shenyang Blue. In addition to that, Jiangxi Hengda is 1.65 times more volatile than Shenyang Blue Silver. It trades about -0.3 of its total potential returns per unit of risk. Shenyang Blue Silver is currently generating about -0.28 per unit of volatility. If you would invest 2,607 in Shenyang Blue Silver on October 16, 2024 and sell it today you would lose (411.00) from holding Shenyang Blue Silver or give up 15.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Shenyang Blue Silver
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Shenyang Blue Silver |
Jiangxi Hengda and Shenyang Blue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Shenyang Blue
The main advantage of trading using opposite Jiangxi Hengda and Shenyang Blue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Shenyang Blue 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 Shenyang Blue will offset losses from the drop in Shenyang Blue'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 |
| Shenyang Blue vs. Songz Automobile Air | Shenyang Blue vs. Tongyu Communication | Shenyang Blue vs. Gansu Huangtai Wine marketing | Shenyang Blue vs. Ningbo Fangzheng Automobile |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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