Correlation Between Jiangxi Selon and Shanghai AtHub
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By analyzing existing cross correlation between Jiangxi Selon Industrial and Shanghai AtHub Co, you can compare the effects of market volatilities on Jiangxi Selon and Shanghai AtHub 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 Selon with a short position of Shanghai AtHub. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Selon and Shanghai AtHub.
Diversification Opportunities for Jiangxi Selon and Shanghai AtHub
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Shanghai is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Selon Industrial and Shanghai AtHub Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai AtHub and Jiangxi Selon 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 Selon Industrial are associated (or correlated) with Shanghai AtHub. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai AtHub has no effect on the direction of Jiangxi Selon i.e., Jiangxi Selon and Shanghai AtHub go up and down completely randomly.
Pair Corralation between Jiangxi Selon and Shanghai AtHub
Assuming the 90 days trading horizon Jiangxi Selon is expected to generate 1.03 times less return on investment than Shanghai AtHub. But when comparing it to its historical volatility, Jiangxi Selon Industrial is 1.24 times less risky than Shanghai AtHub. It trades about 0.39 of its potential returns per unit of risk. Shanghai AtHub Co is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,651 in Shanghai AtHub Co on September 28, 2024 and sell it today you would earn a total of 308.00 from holding Shanghai AtHub Co or generate 18.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Selon Industrial vs. Shanghai AtHub Co
Performance |
| Timeline |
| Jiangxi Selon Industrial |
| Shanghai AtHub |
Jiangxi Selon and Shanghai AtHub Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Selon and Shanghai AtHub
The main advantage of trading using opposite Jiangxi Selon and Shanghai AtHub positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Selon position performs unexpectedly, Shanghai AtHub 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 AtHub will offset losses from the drop in Shanghai AtHub's long position.| Jiangxi Selon vs. Zijin Mining Group | Jiangxi Selon vs. Wanhua Chemical Group | Jiangxi Selon vs. Baoshan Iron Steel | Jiangxi Selon vs. Shandong Gold Mining |
| Shanghai AtHub vs. Industrial and Commercial | Shanghai AtHub vs. Agricultural Bank of | Shanghai AtHub vs. China Construction Bank | Shanghai AtHub vs. Bank of China |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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