Correlation Between Jiangsu Xinning and Caihong Display
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Caihong Display Devices, you can compare the effects of market volatilities on Jiangsu Xinning and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Caihong Display.
Diversification Opportunities for Jiangsu Xinning and Caihong Display
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Caihong is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Caihong Display go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Caihong Display
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.59 times more return on investment than Caihong Display. However, Jiangsu Xinning is 1.59 times more volatile than Caihong Display Devices. It trades about 0.26 of its potential returns per unit of risk. Caihong Display Devices is currently generating about -0.11 per unit of risk. If you would invest 325.00 in Jiangsu Xinning Modern on August 28, 2024 and sell it today you would earn a total of 81.00 from holding Jiangsu Xinning Modern or generate 24.92% 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. Caihong Display Devices
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Caihong Display Devices |
Jiangsu Xinning and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Caihong Display
The main advantage of trading using opposite Jiangsu Xinning and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Jiangsu Xinning vs. North Huajin Chemical | Jiangsu Xinning vs. Miracll Chemicals Co | Jiangsu Xinning vs. Shandong Ruifeng Chemical | Jiangsu Xinning vs. Guangzhou Jointas Chemical |
| Caihong Display vs. Nanjing Putian Telecommunications | Caihong Display vs. Shenzhen Hifuture Electric | Caihong Display vs. Shenyang Huitian Thermal | Caihong Display 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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