Correlation Between Shenzhen Silver and Jiangsu Yueda
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By analyzing existing cross correlation between Shenzhen Silver Basis and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Shenzhen Silver and Jiangsu Yueda 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 Shenzhen Silver with a short position of Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Silver and Jiangsu Yueda.
Diversification Opportunities for Shenzhen Silver and Jiangsu Yueda
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Silver Basis and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda Investment and Shenzhen Silver 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 Shenzhen Silver Basis are associated (or correlated) with Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Shenzhen Silver i.e., Shenzhen Silver and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Shenzhen Silver and Jiangsu Yueda
Assuming the 90 days trading horizon Shenzhen Silver is expected to generate 3.0 times less return on investment than Jiangsu Yueda. In addition to that, Shenzhen Silver is 1.55 times more volatile than Jiangsu Yueda Investment. It trades about 0.01 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about 0.02 per unit of volatility. If you would invest 465.00 in Jiangsu Yueda Investment on September 14, 2024 and sell it today you would earn a total of 35.00 from holding Jiangsu Yueda Investment or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Silver Basis vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Shenzhen Silver Basis |
| Jiangsu Yueda Investment |
Shenzhen Silver and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Silver and Jiangsu Yueda
The main advantage of trading using opposite Shenzhen Silver and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Silver position performs unexpectedly, Jiangsu Yueda 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 Yueda will offset losses from the drop in Jiangsu Yueda's long position.| Shenzhen Silver vs. Jointo Energy Investment | Shenzhen Silver vs. Harbin Air Conditioning | Shenzhen Silver vs. Harbin Hatou Investment | Shenzhen Silver vs. Jiangsu Yueda Investment |
| Jiangsu Yueda vs. Lutian Machinery Co | Jiangsu Yueda vs. China Longyuan Power | Jiangsu Yueda vs. PetroChina Co Ltd | Jiangsu Yueda 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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