Correlation Between Jiangsu Hoperun and Shanxi Tond
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Shanxi Tond Chemical, you can compare the effects of market volatilities on Jiangsu Hoperun and Shanxi Tond 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 Hoperun with a short position of Shanxi Tond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Shanxi Tond.
Diversification Opportunities for Jiangsu Hoperun and Shanxi Tond
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and Shanxi is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and Shanxi Tond Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Tond Chemical and Jiangsu Hoperun 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 Hoperun Software are associated (or correlated) with Shanxi Tond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Tond Chemical has no effect on the direction of Jiangsu Hoperun i.e., Jiangsu Hoperun and Shanxi Tond go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Shanxi Tond
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to under-perform the Shanxi Tond. In addition to that, Jiangsu Hoperun is 1.66 times more volatile than Shanxi Tond Chemical. It trades about -0.05 of its total potential returns per unit of risk. Shanxi Tond Chemical is currently generating about -0.06 per unit of volatility. If you would invest 499.00 in Shanxi Tond Chemical on October 29, 2024 and sell it today you would lose (18.00) from holding Shanxi Tond Chemical or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Shanxi Tond Chemical
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Shanxi Tond Chemical |
Jiangsu Hoperun and Shanxi Tond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Shanxi Tond
The main advantage of trading using opposite Jiangsu Hoperun and Shanxi Tond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun position performs unexpectedly, Shanxi Tond 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 Shanxi Tond will offset losses from the drop in Shanxi Tond's long position.| Jiangsu Hoperun vs. Shandong Polymer Biochemicals | Jiangsu Hoperun vs. Vats Liquor Chain | Jiangsu Hoperun vs. Ningxia Younglight Chemicals | Jiangsu Hoperun vs. Shenzhen Noposion Agrochemicals |
| Shanxi Tond vs. Soochow Suzhou Industrial | Shanxi Tond vs. Olympic Circuit Technology | Shanxi Tond vs. Guangdong Jingyi Metal | Shanxi Tond vs. Ningbo Fujia Industrial |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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