Correlation Between Guizhou Chanhen and Jiangsu Jinling
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Guizhou Chanhen and Jiangsu Jinling 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 Guizhou Chanhen with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Jiangsu Jinling.
Diversification Opportunities for Guizhou Chanhen and Jiangsu Jinling
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guizhou and Jiangsu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Guizhou Chanhen 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 Guizhou Chanhen Chemical are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Guizhou Chanhen i.e., Guizhou Chanhen and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Jiangsu Jinling
Assuming the 90 days trading horizon Guizhou Chanhen is expected to generate 1.56 times less return on investment than Jiangsu Jinling. In addition to that, Guizhou Chanhen is 1.22 times more volatile than Jiangsu Jinling Sports. It trades about 0.14 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.26 per unit of volatility. If you would invest 1,322 in Jiangsu Jinling Sports on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Jiangsu Jinling Sports or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Jiangsu Jinling Sports |
Guizhou Chanhen and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Jiangsu Jinling
The main advantage of trading using opposite Guizhou Chanhen and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Guizhou Chanhen vs. GKHT Medical Technology | Guizhou Chanhen vs. Shanghai Jinfeng Wine | Guizhou Chanhen vs. Guangdong Qunxing Toys | Guizhou Chanhen vs. Ningbo David Medical |
| Jiangsu Jinling vs. Nanjing Putian Telecommunications | Jiangsu Jinling vs. Shenzhen Hifuture Electric | Jiangsu Jinling vs. Tianjin Realty Development | Jiangsu Jinling vs. Shenyang Huitian Thermal |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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