Correlation Between Jiangxi Hengda and Jiangsu Jinling
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Jiangxi Hengda and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Jiangsu Jinling.
Diversification Opportunities for Jiangxi Hengda and Jiangsu Jinling
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangxi and Jiangsu is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Jiangsu Jinling
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Jiangsu Jinling. In addition to that, Jiangxi Hengda is 1.05 times more volatile than Jiangsu Jinling Sports. It trades about -0.21 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.22 per unit of volatility. If you would invest 1,574 in Jiangsu Jinling Sports on October 17, 2024 and sell it today you would lose (337.00) from holding Jiangsu Jinling Sports or give up 21.41% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Jiangsu Jinling Sports |
Jiangxi Hengda and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Jiangsu Jinling
The main advantage of trading using opposite Jiangxi Hengda and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Jiangxi Hengda vs. Shanghai Action Education | Jiangxi Hengda vs. Gansu Jiu Steel | Jiangxi Hengda vs. Heilongjiang Publishing Media | Jiangxi Hengda vs. Eit Environmental Development |
| Jiangsu Jinling vs. Hunan Mendale Hometextile | Jiangsu Jinling vs. Qumei Furniture Group | Jiangsu Jinling vs. Jiangxi Hengda Hi Tech | Jiangsu Jinling vs. DO Home Collection |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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