Correlation Between Jiangsu Zhongshe and Shenzhen Glory
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By analyzing existing cross correlation between Jiangsu Zhongshe Group and Shenzhen Glory Medical, you can compare the effects of market volatilities on Jiangsu Zhongshe and Shenzhen Glory 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 Jiangsu Zhongshe with a short position of Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongshe and Shenzhen Glory.
Diversification Opportunities for Jiangsu Zhongshe and Shenzhen Glory
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongshe Group and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical and Jiangsu Zhongshe 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 Jiangsu Zhongshe Group are associated (or correlated) with Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Jiangsu Zhongshe i.e., Jiangsu Zhongshe and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Jiangsu Zhongshe and Shenzhen Glory
Assuming the 90 days trading horizon Jiangsu Zhongshe is expected to generate 2.03 times less return on investment than Shenzhen Glory. But when comparing it to its historical volatility, Jiangsu Zhongshe Group is 1.25 times less risky than Shenzhen Glory. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Glory Medical is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 342.00 in Shenzhen Glory Medical on September 12, 2024 and sell it today you would earn a total of 33.00 from holding Shenzhen Glory Medical or generate 9.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiangsu Zhongshe Group vs. Shenzhen Glory Medical
Performance |
| Timeline |
| Jiangsu Zhongshe |
| Shenzhen Glory Medical |
Jiangsu Zhongshe and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongshe and Shenzhen Glory
The main advantage of trading using opposite Jiangsu Zhongshe and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongshe position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory's long position.| Jiangsu Zhongshe vs. Shenzhen Glory Medical | Jiangsu Zhongshe vs. Gem Year Industrial Co | Jiangsu Zhongshe vs. Cofoe Medical Technology | Jiangsu Zhongshe vs. Hengkang Medical Group |
| Shenzhen Glory vs. Agricultural Bank of | Shenzhen Glory vs. Industrial and Commercial | Shenzhen Glory vs. Bank of China | Shenzhen Glory vs. PetroChina Co Ltd |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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