Correlation Between Sichuan Jinshi and Jiangsu Jinling
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By analyzing existing cross correlation between Sichuan Jinshi Technology and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Sichuan Jinshi 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 Sichuan Jinshi with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Jinshi and Jiangsu Jinling.
Diversification Opportunities for Sichuan Jinshi and Jiangsu Jinling
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Jiangsu is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Jinshi Technology 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 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 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 Sichuan Jinshi i.e., Sichuan Jinshi and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Sichuan Jinshi and Jiangsu Jinling
Assuming the 90 days trading horizon Sichuan Jinshi Technology is expected to generate 0.84 times more return on investment than Jiangsu Jinling. However, Sichuan Jinshi Technology is 1.19 times less risky than Jiangsu Jinling. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.04 per unit of risk. If you would invest 471.00 in Sichuan Jinshi Technology on November 3, 2024 and sell it today you would earn a total of 150.00 from holding Sichuan Jinshi Technology or generate 31.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Jinshi Technology vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Sichuan Jinshi Technology |
| Jiangsu Jinling Sports |
Sichuan Jinshi and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Jinshi and Jiangsu Jinling
The main advantage of trading using opposite Sichuan Jinshi and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Jinshi 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.| Sichuan Jinshi vs. Suzhou Oriental Semiconductor | Sichuan Jinshi vs. Thinkon Semiconductor Jinzhou | Sichuan Jinshi vs. Will Semiconductor Co | Sichuan Jinshi vs. Tieling Newcity Investment |
| Jiangsu Jinling vs. Huatian Hotel Group | Jiangsu Jinling vs. BTG Hotels Group | Jiangsu Jinling vs. Wonders Information | Jiangsu Jinling vs. Longmaster Information Tech |
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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