Correlation Between Jiangxi Hengda and Shanghai Zhangjiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Shanghai Zhangjiang Hi Tech, you can compare the effects of market volatilities on Jiangxi Hengda and Shanghai Zhangjiang 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 Shanghai Zhangjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Shanghai Zhangjiang.
Diversification Opportunities for Jiangxi Hengda and Shanghai Zhangjiang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Shanghai Zhangjiang Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Zhangjiang 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 Shanghai Zhangjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Zhangjiang has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Shanghai Zhangjiang go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Shanghai Zhangjiang
Assuming the 90 days trading horizon Jiangxi Hengda is expected to generate 1.31 times less return on investment than Shanghai Zhangjiang. But when comparing it to its historical volatility, Jiangxi Hengda Hi Tech is 1.3 times less risky than Shanghai Zhangjiang. It trades about 0.09 of its potential returns per unit of risk. Shanghai Zhangjiang Hi Tech is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,997 in Shanghai Zhangjiang Hi Tech on August 29, 2024 and sell it today you would earn a total of 805.00 from holding Shanghai Zhangjiang Hi Tech or generate 40.31% return on investment 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. Shanghai Zhangjiang Hi Tech
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Shanghai Zhangjiang |
Jiangxi Hengda and Shanghai Zhangjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Shanghai Zhangjiang
The main advantage of trading using opposite Jiangxi Hengda and Shanghai Zhangjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Shanghai Zhangjiang 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 Shanghai Zhangjiang will offset losses from the drop in Shanghai Zhangjiang's long position.| Jiangxi Hengda vs. CareRay Digital Medical | Jiangxi Hengda vs. Sino Medical Sciences | Jiangxi Hengda vs. Hengkang Medical Group | Jiangxi Hengda vs. Jiangsu Jinling Sports |
| Shanghai Zhangjiang vs. Industrial and Commercial | Shanghai Zhangjiang vs. China Construction Bank | Shanghai Zhangjiang vs. Bank of China | Shanghai Zhangjiang vs. Agricultural Bank of |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |