Correlation Between Dongjiang Environmental and Shanghai Jinfeng
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By analyzing existing cross correlation between Dongjiang Environmental Co and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Dongjiang Environmental and Shanghai Jinfeng 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 Dongjiang Environmental with a short position of Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongjiang Environmental and Shanghai Jinfeng.
Diversification Opportunities for Dongjiang Environmental and Shanghai Jinfeng
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dongjiang and Shanghai is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Dongjiang Environmental Co and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine and Dongjiang Environmental 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 Dongjiang Environmental Co are associated (or correlated) with Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Dongjiang Environmental i.e., Dongjiang Environmental and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Dongjiang Environmental and Shanghai Jinfeng
Assuming the 90 days trading horizon Dongjiang Environmental is expected to generate 2.83 times less return on investment than Shanghai Jinfeng. In addition to that, Dongjiang Environmental is 1.04 times more volatile than Shanghai Jinfeng Wine. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.02 per unit of volatility. If you would invest 641.00 in Shanghai Jinfeng Wine on September 12, 2024 and sell it today you would earn a total of 20.00 from holding Shanghai Jinfeng Wine or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongjiang Environmental Co vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Dongjiang Environmental |
| Shanghai Jinfeng Wine |
Dongjiang Environmental and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongjiang Environmental and Shanghai Jinfeng
The main advantage of trading using opposite Dongjiang Environmental and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongjiang Environmental position performs unexpectedly, Shanghai Jinfeng 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 Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Dongjiang Environmental vs. Agricultural Bank of | Dongjiang Environmental vs. Industrial and Commercial | Dongjiang Environmental vs. Bank of China | Dongjiang Environmental vs. PetroChina Co Ltd |
| Shanghai Jinfeng vs. China Petroleum Chemical | Shanghai Jinfeng vs. PetroChina Co Ltd | Shanghai Jinfeng vs. China State Construction | Shanghai Jinfeng vs. China Railway Group |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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