Correlation Between Songcheng Performance and Jiangsu Jinling
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By analyzing existing cross correlation between Songcheng Performance Develop and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Songcheng Performance and Jiangsu Jinling 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 Songcheng Performance with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songcheng Performance and Jiangsu Jinling.
Diversification Opportunities for Songcheng Performance and Jiangsu Jinling
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Songcheng and Jiangsu is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Songcheng Performance Develop and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Songcheng Performance 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 Songcheng Performance Develop are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Songcheng Performance i.e., Songcheng Performance and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Songcheng Performance and Jiangsu Jinling
Assuming the 90 days trading horizon Songcheng Performance is expected to generate 1.09 times less return on investment than Jiangsu Jinling. In addition to that, Songcheng Performance is 1.28 times more volatile than Jiangsu Jinling Sports. It trades about 0.1 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.14 per unit of volatility. If you would invest 1,109 in Jiangsu Jinling Sports on August 29, 2024 and sell it today you would earn a total of 306.00 from holding Jiangsu Jinling Sports or generate 27.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songcheng Performance Develop vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Songcheng Performance |
| Jiangsu Jinling Sports |
Songcheng Performance and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songcheng Performance and Jiangsu Jinling
The main advantage of trading using opposite Songcheng Performance and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songcheng Performance position performs unexpectedly, Jiangsu Jinling 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 Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Songcheng Performance vs. Blue Sail Medical | Songcheng Performance vs. HeBei Jinniu Chemical | Songcheng Performance vs. Double Medical Technology | Songcheng Performance vs. Hubei Dinglong Chemical |
| Jiangsu Jinling vs. Ningbo Construction Co | Jiangsu Jinling vs. Anhui Huilong Agricultural | Jiangsu Jinling vs. Tsingtao Brewery Co | Jiangsu Jinling vs. Eastern Air Logistics |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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