Correlation Between Shanghai Yaoji and Jiangsu Zhongtian
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By analyzing existing cross correlation between Shanghai Yaoji Playing and Jiangsu Zhongtian Technology, you can compare the effects of market volatilities on Shanghai Yaoji and Jiangsu Zhongtian 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 Shanghai Yaoji with a short position of Jiangsu Zhongtian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and Jiangsu Zhongtian.
Diversification Opportunities for Shanghai Yaoji and Jiangsu Zhongtian
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shanghai and Jiangsu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and Jiangsu Zhongtian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Zhongtian and Shanghai Yaoji 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 Shanghai Yaoji Playing are associated (or correlated) with Jiangsu Zhongtian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Zhongtian has no effect on the direction of Shanghai Yaoji i.e., Shanghai Yaoji and Jiangsu Zhongtian go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and Jiangsu Zhongtian
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to generate 1.51 times more return on investment than Jiangsu Zhongtian. However, Shanghai Yaoji is 1.51 times more volatile than Jiangsu Zhongtian Technology. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Zhongtian Technology is currently generating about 0.0 per unit of risk. If you would invest 1,423 in Shanghai Yaoji Playing on October 13, 2024 and sell it today you would earn a total of 1,037 from holding Shanghai Yaoji Playing or generate 72.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. Jiangsu Zhongtian Technology
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| Jiangsu Zhongtian |
Shanghai Yaoji and Jiangsu Zhongtian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and Jiangsu Zhongtian
The main advantage of trading using opposite Shanghai Yaoji and Jiangsu Zhongtian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji position performs unexpectedly, Jiangsu Zhongtian 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 Zhongtian will offset losses from the drop in Jiangsu Zhongtian's long position.| Shanghai Yaoji vs. Anhui Jianghuai Automobile | Shanghai Yaoji vs. Hainan Airlines Co | Shanghai Yaoji vs. Xiandai Investment Co | Shanghai Yaoji vs. Xiangyang Automobile Bearing |
| Jiangsu Zhongtian vs. Shanghai Yaoji Playing | Jiangsu Zhongtian vs. Sinomach General Machinery | Jiangsu Zhongtian vs. Shannon Semiconductor Technology | Jiangsu Zhongtian vs. Shanghai V Test Semiconductor |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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