Correlation Between Jiangxi Hengda and Shanghai Rongtai
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Shanghai Rongtai Health, you can compare the effects of market volatilities on Jiangxi Hengda and Shanghai Rongtai 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 Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Shanghai Rongtai.
Diversification Opportunities for Jiangxi Hengda and Shanghai Rongtai
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangxi and Shanghai is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Shanghai Rongtai
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to generate 1.37 times more return on investment than Shanghai Rongtai. However, Jiangxi Hengda is 1.37 times more volatile than Shanghai Rongtai Health. It trades about 0.0 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.03 per unit of risk. If you would invest 665.00 in Jiangxi Hengda Hi Tech on September 1, 2024 and sell it today you would lose (86.00) from holding Jiangxi Hengda Hi Tech or give up 12.93% 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. Shanghai Rongtai Health
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Shanghai Rongtai Health |
Jiangxi Hengda and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Shanghai Rongtai
The main advantage of trading using opposite Jiangxi Hengda and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Shanghai Rongtai 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 Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining | Jiangxi Hengda vs. Rongsheng Petrochemical Co |
| Shanghai Rongtai vs. Hongrun Construction Group | Shanghai Rongtai vs. Tengda Construction Group | Shanghai Rongtai vs. Xiangyang Automobile Bearing | Shanghai Rongtai vs. Chongqing Changan 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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