Correlation Between Jiangxi Hengda and Shenzhen Bingchuan
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Shenzhen Bingchuan Network, you can compare the effects of market volatilities on Jiangxi Hengda and Shenzhen Bingchuan 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 Shenzhen Bingchuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Shenzhen Bingchuan.
Diversification Opportunities for Jiangxi Hengda and Shenzhen Bingchuan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Shenzhen is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Shenzhen Bingchuan Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bingchuan 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 Shenzhen Bingchuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bingchuan has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Shenzhen Bingchuan go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Shenzhen Bingchuan
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 0.91 times more return on investment than Shenzhen Bingchuan. However, Jiangxi Hengda Hi Tech is 1.09 times less risky than Shenzhen Bingchuan. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Bingchuan Network is currently generating about 0.0 per unit of risk. If you would invest 697.00 in Jiangxi Hengda Hi Tech on September 14, 2024 and sell it today you would lose (46.00) from holding Jiangxi Hengda Hi Tech or give up 6.6% 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. Shenzhen Bingchuan Network
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Shenzhen Bingchuan |
Jiangxi Hengda and Shenzhen Bingchuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Shenzhen Bingchuan
The main advantage of trading using opposite Jiangxi Hengda and Shenzhen Bingchuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Shenzhen Bingchuan 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 Shenzhen Bingchuan will offset losses from the drop in Shenzhen Bingchuan's long position.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining |
| Shenzhen Bingchuan vs. Jiangxi Hengda Hi Tech | Shenzhen Bingchuan vs. Do Fluoride Chemicals Co | Shenzhen Bingchuan vs. Jilin Jlu Communication | Shenzhen Bingchuan vs. Xinjiang Communications Construction |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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