Correlation Between Jiangsu Xinning and Jiangsu Changfa
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Jiangsu Changfa Refrigeration, you can compare the effects of market volatilities on Jiangsu Xinning and Jiangsu Changfa 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 Xinning with a short position of Jiangsu Changfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Jiangsu Changfa.
Diversification Opportunities for Jiangsu Xinning and Jiangsu Changfa
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Jiangsu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Jiangsu Changfa Refrigeration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Changfa Refr and Jiangsu Xinning 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 Xinning Modern are associated (or correlated) with Jiangsu Changfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Changfa Refr has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Jiangsu Changfa go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Jiangsu Changfa
Assuming the 90 days trading horizon Jiangsu Xinning is expected to generate 5.27 times less return on investment than Jiangsu Changfa. In addition to that, Jiangsu Xinning is 1.42 times more volatile than Jiangsu Changfa Refrigeration. It trades about 0.0 of its total potential returns per unit of risk. Jiangsu Changfa Refrigeration is currently generating about 0.01 per unit of volatility. If you would invest 480.00 in Jiangsu Changfa Refrigeration on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Jiangsu Changfa Refrigeration or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Jiangsu Changfa Refrigeration
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Jiangsu Changfa Refr |
Jiangsu Xinning and Jiangsu Changfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Jiangsu Changfa
The main advantage of trading using opposite Jiangsu Xinning and Jiangsu Changfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Jiangsu Changfa 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 Changfa will offset losses from the drop in Jiangsu Changfa's long position.| Jiangsu Xinning vs. Duzhe Publishing Media | Jiangsu Xinning vs. Allwin Telecommunication Co | Jiangsu Xinning vs. Songz Automobile Air | Jiangsu Xinning vs. Zotye Automobile Co |
| Jiangsu Changfa vs. Postal Savings Bank | Jiangsu Changfa vs. Chahua Modern Housewares | Jiangsu Changfa vs. Harbin Hatou Investment | Jiangsu Changfa vs. MayAir Technology Co |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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