Correlation Between Shenzhen Bingchuan and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Bingchuan Network and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Shenzhen Bingchuan 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 Shenzhen Bingchuan with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bingchuan and Jiangsu Jinling.
Diversification Opportunities for Shenzhen Bingchuan and Jiangsu Jinling
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bingchuan Network 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 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 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 Shenzhen Bingchuan i.e., Shenzhen Bingchuan and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Shenzhen Bingchuan and Jiangsu Jinling
Assuming the 90 days trading horizon Shenzhen Bingchuan Network is expected to generate 1.91 times more return on investment than Jiangsu Jinling. However, Shenzhen Bingchuan is 1.91 times more volatile than Jiangsu Jinling Sports. It trades about 0.32 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.21 per unit of risk. If you would invest 1,842 in Shenzhen Bingchuan Network on August 30, 2024 and sell it today you would earn a total of 649.00 from holding Shenzhen Bingchuan Network or generate 35.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bingchuan Network vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Shenzhen Bingchuan |
| Jiangsu Jinling Sports |
Shenzhen Bingchuan and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bingchuan and Jiangsu Jinling
The main advantage of trading using opposite Shenzhen Bingchuan and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bingchuan 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.The idea behind Shenzhen Bingchuan Network and Jiangsu Jinling Sports pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jiangsu Jinling vs. Cambricon Technologies Corp | Jiangsu Jinling vs. Loongson Technology Corp | Jiangsu Jinling vs. Shenzhen Fortune Trend | Jiangsu Jinling vs. Chongqing Road Bridge |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |