Correlation Between Jiangsu Xinning and Tianjin Hi
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Tianjin Hi Tech Development, you can compare the effects of market volatilities on Jiangsu Xinning and Tianjin Hi 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 Tianjin Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Tianjin Hi.
Diversification Opportunities for Jiangsu Xinning and Tianjin Hi
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Tianjin is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Tianjin Hi Tech Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Hi Tech 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 Tianjin Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Hi Tech has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Tianjin Hi go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Tianjin Hi
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.51 times more return on investment than Tianjin Hi. However, Jiangsu Xinning is 1.51 times more volatile than Tianjin Hi Tech Development. It trades about 0.0 of its potential returns per unit of risk. Tianjin Hi Tech Development is currently generating about -0.01 per unit of risk. If you would invest 522.00 in Jiangsu Xinning Modern on August 26, 2024 and sell it today you would lose (149.00) from holding Jiangsu Xinning Modern or give up 28.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Tianjin Hi Tech Development
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Tianjin Hi Tech |
Jiangsu Xinning and Tianjin Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Tianjin Hi
The main advantage of trading using opposite Jiangsu Xinning and Tianjin Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Tianjin Hi 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 Tianjin Hi will offset losses from the drop in Tianjin Hi's long position.| Jiangsu Xinning vs. Sportsoul Co Ltd | Jiangsu Xinning vs. Chengdu Spaceon Electronics | Jiangsu Xinning vs. Shandong Longquan Pipeline | Jiangsu Xinning vs. Shanghai CEO Environmental |
| Tianjin Hi vs. Nanjing Putian Telecommunications | Tianjin Hi vs. Shenzhen Hifuture Electric | Tianjin Hi vs. Shenyang Huitian Thermal | Tianjin Hi vs. Jiangsu Xinning Modern |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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