Correlation Between Sichuan Jinshi and Qingdao Rural
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Qingdao Rural Commercial, you can compare the effects of market volatilities on Sichuan Jinshi and Qingdao Rural 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 Sichuan Jinshi with a short position of Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Qingdao Rural.
Diversification Opportunities for Sichuan Jinshi and Qingdao Rural
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Qingdao is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial and Sichuan Jinshi 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 Sichuan Jinshi Technology are associated (or correlated) with Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of Sichuan Jinshi i.e., Sichuan Jinshi and Qingdao Rural go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Qingdao Rural
Assuming the 90 days trading horizon Sichuan Jinshi is expected to generate 13.16 times less return on investment than Qingdao Rural. In addition to that, Sichuan Jinshi is 1.98 times more volatile than Qingdao Rural Commercial. It trades about 0.0 of its total potential returns per unit of risk. Qingdao Rural Commercial is currently generating about 0.03 per unit of volatility. If you would invest 273.00 in Qingdao Rural Commercial on September 14, 2024 and sell it today you would earn a total of 47.00 from holding Qingdao Rural Commercial or generate 17.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Qingdao Rural Commercial
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Qingdao Rural Commercial |
Sichuan Jinshi and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Qingdao Rural
The main advantage of trading using opposite Sichuan Jinshi and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural's long position.| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Shandong Gold Mining |
| Qingdao Rural vs. Railway Signal Communication | Qingdao Rural vs. Sichuan Jinshi Technology | Qingdao Rural vs. FSPG Hi Tech Co | Qingdao Rural vs. Ping An Insurance |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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