Correlation Between Jiangsu Zhongshe and 159681
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By analyzing existing cross correlation between Jiangsu Zhongshe Group and 159681, you can compare the effects of market volatilities on Jiangsu Zhongshe and 159681 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 159681. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongshe and 159681.
Diversification Opportunities for Jiangsu Zhongshe and 159681
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and 159681 is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongshe Group and 159681 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 159681 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 159681. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 159681 has no effect on the direction of Jiangsu Zhongshe i.e., Jiangsu Zhongshe and 159681 go up and down completely randomly.
Pair Corralation between Jiangsu Zhongshe and 159681
Assuming the 90 days trading horizon Jiangsu Zhongshe is expected to generate 2.3 times less return on investment than 159681. In addition to that, Jiangsu Zhongshe is 1.18 times more volatile than 159681. It trades about 0.02 of its total potential returns per unit of risk. 159681 is currently generating about 0.05 per unit of volatility. If you would invest 77.00 in 159681 on September 3, 2024 and sell it today you would earn a total of 22.00 from holding 159681 or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Zhongshe Group vs. 159681
Performance |
| Timeline |
| Jiangsu Zhongshe |
| 159681 |
Jiangsu Zhongshe and 159681 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongshe and 159681
The main advantage of trading using opposite Jiangsu Zhongshe and 159681 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongshe position performs unexpectedly, 159681 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 159681 will offset losses from the drop in 159681's long position.| Jiangsu Zhongshe vs. Tibet Huayu Mining | Jiangsu Zhongshe vs. Will Semiconductor Co | Jiangsu Zhongshe vs. Guangzhou Seagull Kitchen | Jiangsu Zhongshe vs. Anhui Deli Household |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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