Correlation Between Jiangsu Jinling and Xian International
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Xian International Medical, you can compare the effects of market volatilities on Jiangsu Jinling and Xian International 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 Jinling with a short position of Xian International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Xian International.
Diversification Opportunities for Jiangsu Jinling and Xian International
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Xian is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Xian International Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xian International and Jiangsu Jinling 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 Jinling Sports are associated (or correlated) with Xian International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xian International has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Xian International go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Xian International
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.58 times more return on investment than Xian International. However, Jiangsu Jinling Sports is 1.71 times less risky than Xian International. It trades about 0.29 of its potential returns per unit of risk. Xian International Medical is currently generating about 0.17 per unit of risk. If you would invest 1,314 in Jiangsu Jinling Sports on September 5, 2024 and sell it today you would earn a total of 209.00 from holding Jiangsu Jinling Sports or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Xian International Medical
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Xian International |
Jiangsu Jinling and Xian International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Xian International
The main advantage of trading using opposite Jiangsu Jinling and Xian International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Xian International 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 Xian International will offset losses from the drop in Xian International's long position.| Jiangsu Jinling vs. Spring Airlines Co | Jiangsu Jinling vs. Tianjin Capital Environmental | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Elite Color Environmental |
| Xian International vs. Industrial and Commercial | Xian International vs. Agricultural Bank of | Xian International vs. China Construction Bank | Xian International vs. Bank of China |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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