Correlation Between Shenzhen Bingchuan and Jizhong Energy
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By analyzing existing cross correlation between Shenzhen Bingchuan Network and Jizhong Energy Resources, you can compare the effects of market volatilities on Shenzhen Bingchuan and Jizhong Energy 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 Shenzhen Bingchuan with a short position of Jizhong Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Jizhong Energy.
Diversification Opportunities for Shenzhen Bingchuan and Jizhong Energy
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jizhong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network and Jizhong Energy Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jizhong Energy Resources and Shenzhen Bingchuan 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 Shenzhen Bingchuan Network are associated (or correlated) with Jizhong Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jizhong Energy Resources has no effect on the direction of Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Jizhong Energy go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Jizhong Energy
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 2.3 times more return on investment than Jizhong Energy. However, Shenzhen Bingchuan is 2.3 times more volatile than Jizhong Energy Resources. It trades about 0.18 of its potential returns per unit of risk. Jizhong Energy Resources is currently generating about -0.15 per unit of risk. If you would invest 1,942 in Shenzhen Bingchuan Network on November 3, 2024 and sell it today you would earn a total of 198.00 from holding Shenzhen Bingchuan Network or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Jizhong Energy Resources
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Jizhong Energy Resources |
Shenzhen Bingchuan and Jizhong Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Jizhong Energy
The main advantage of trading using opposite Shenzhen Bingchuan and Jizhong Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan position performs unexpectedly, Jizhong Energy 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 Jizhong Energy will offset losses from the drop in Jizhong Energy's long position.| Shenzhen Bingchuan vs. Lier Chemical Co | Shenzhen Bingchuan vs. Lianhe Chemical Technology | Shenzhen Bingchuan vs. Huasi Agricultural Development | Shenzhen Bingchuan vs. Tjk Machinery Tianjin |
| Jizhong Energy vs. Qtone Education Group | Jizhong Energy vs. Southern PublishingMedia Co | Jizhong Energy vs. China Publishing Media | Jizhong Energy vs. CareRay Digital Medical |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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