Correlation Between 159005 and Jiangsu Yike
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By analyzing existing cross correlation between 159005 and Jiangsu Yike Food, you can compare the effects of market volatilities on 159005 and Jiangsu Yike 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 159005 with a short position of Jiangsu Yike. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159005 and Jiangsu Yike.
Diversification Opportunities for 159005 and Jiangsu Yike
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159005 and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding 159005 and Jiangsu Yike Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yike Food and 159005 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 159005 are associated (or correlated) with Jiangsu Yike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yike Food has no effect on the direction of 159005 i.e., 159005 and Jiangsu Yike go up and down completely randomly.
Pair Corralation between 159005 and Jiangsu Yike
If you would invest 1,233 in Jiangsu Yike Food on September 3, 2024 and sell it today you would earn a total of 136.00 from holding Jiangsu Yike Food or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159005 vs. Jiangsu Yike Food
Performance |
| Timeline |
| 159005 |
| Jiangsu Yike Food |
159005 and Jiangsu Yike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159005 and Jiangsu Yike
The main advantage of trading using opposite 159005 and Jiangsu Yike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159005 position performs unexpectedly, Jiangsu Yike 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 Yike will offset losses from the drop in Jiangsu Yike's long position.The idea behind 159005 and Jiangsu Yike Food pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jiangsu Yike vs. Beijing Wantai Biological | Jiangsu Yike vs. Aluminum Corp of | Jiangsu Yike vs. COL Digital Publishing | Jiangsu Yike vs. Shaanxi Meineng Clean |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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