Correlation Between Jiangsu Jinling and Shenzhen MYS
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Shenzhen MYS Environmental, you can compare the effects of market volatilities on Jiangsu Jinling and Shenzhen MYS 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 Shenzhen MYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Shenzhen MYS.
Diversification Opportunities for Jiangsu Jinling and Shenzhen MYS
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Shenzhen MYS Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen MYS Environ 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 Shenzhen MYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen MYS Environ has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Shenzhen MYS go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Shenzhen MYS
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Shenzhen MYS. In addition to that, Jiangsu Jinling is 1.29 times more volatile than Shenzhen MYS Environmental. It trades about -0.03 of its total potential returns per unit of risk. Shenzhen MYS Environmental is currently generating about 0.05 per unit of volatility. If you would invest 282.00 in Shenzhen MYS Environmental on August 25, 2024 and sell it today you would earn a total of 93.00 from holding Shenzhen MYS Environmental or generate 32.98% 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. Shenzhen MYS Environmental
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Shenzhen MYS Environ |
Jiangsu Jinling and Shenzhen MYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Shenzhen MYS
The main advantage of trading using opposite Jiangsu Jinling and Shenzhen MYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Shenzhen MYS 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 Shenzhen MYS will offset losses from the drop in Shenzhen MYS's long position.| Jiangsu Jinling vs. Western Metal Materials | Jiangsu Jinling vs. Dalian Thermal Power | Jiangsu Jinling vs. Shanghai Yanpu Metal | Jiangsu Jinling vs. China Publishing Media |
| Shenzhen MYS vs. Zijin Mining Group | Shenzhen MYS vs. Wanhua Chemical Group | Shenzhen MYS vs. Baoshan Iron Steel | Shenzhen MYS vs. Shandong Gold Mining |
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 Stocks Directory module to find actively traded stocks across global markets.
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