Correlation Between Jiangsu Xinning and Zhuzhou Kibing
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Zhuzhou Kibing Group, you can compare the effects of market volatilities on Jiangsu Xinning and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Zhuzhou Kibing.
Diversification Opportunities for Jiangsu Xinning and Zhuzhou Kibing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zhuzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Zhuzhou Kibing
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 1.64 times more return on investment than Zhuzhou Kibing. However, Jiangsu Xinning is 1.64 times more volatile than Zhuzhou Kibing Group. It trades about 0.0 of its potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.03 per unit of risk. If you would invest 576.00 in Jiangsu Xinning Modern on August 29, 2024 and sell it today you would lose (179.00) from holding Jiangsu Xinning Modern or give up 31.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Zhuzhou Kibing Group |
Jiangsu Xinning and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Zhuzhou Kibing
The main advantage of trading using opposite Jiangsu Xinning and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| Jiangsu Xinning vs. China Sports Industry | Jiangsu Xinning vs. ZYF Lopsking Aluminum | Jiangsu Xinning vs. Sunny Loan Top | Jiangsu Xinning vs. Anhui Transport Consulting |
| Zhuzhou Kibing vs. Guangzhou Haige Communications | Zhuzhou Kibing vs. Eastern Communications Co | Zhuzhou Kibing vs. Sunwave Communications Co | Zhuzhou Kibing vs. Shenzhen Kexin Communication |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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