Correlation Between Shanghai Phichem and Jiangsu Broadcasting
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By analyzing existing cross correlation between Shanghai Phichem Material and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Shanghai Phichem and Jiangsu Broadcasting 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 Shanghai Phichem with a short position of Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Phichem and Jiangsu Broadcasting.
Diversification Opportunities for Shanghai Phichem and Jiangsu Broadcasting
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Jiangsu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Phichem Material and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting and Shanghai Phichem 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 Shanghai Phichem Material are associated (or correlated) with Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Shanghai Phichem i.e., Shanghai Phichem and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Shanghai Phichem and Jiangsu Broadcasting
Assuming the 90 days trading horizon Shanghai Phichem Material is expected to generate 1.69 times more return on investment than Jiangsu Broadcasting. However, Shanghai Phichem is 1.69 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about -0.06 per unit of risk. If you would invest 1,600 in Shanghai Phichem Material on November 6, 2024 and sell it today you would lose (15.00) from holding Shanghai Phichem Material or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Phichem Material vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Shanghai Phichem Material |
| Jiangsu Broadcasting |
Shanghai Phichem and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Phichem and Jiangsu Broadcasting
The main advantage of trading using opposite Shanghai Phichem and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Phichem position performs unexpectedly, Jiangsu Broadcasting 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 Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Shanghai Phichem vs. Hubei Geoway Investment | Shanghai Phichem vs. Shaanxi Energy Investment | Shanghai Phichem vs. Luyin Investment Group | Shanghai Phichem vs. Shanghai Material Trading |
| Jiangsu Broadcasting vs. Guangdong Qunxing Toys | Jiangsu Broadcasting vs. Marssenger Kitchenware Co | Jiangsu Broadcasting vs. Jilin OLED Material | Jiangsu Broadcasting vs. Ningbo Tip Rubber |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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