Correlation Between Jiangsu Jinling and Shenzhen New
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Shenzhen New Nanshan, you can compare the effects of market volatilities on Jiangsu Jinling and Shenzhen New 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 New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Shenzhen New.
Diversification Opportunities for Jiangsu Jinling and Shenzhen New
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Shenzhen New Nanshan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen New Nanshan 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 New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen New Nanshan has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Shenzhen New go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Shenzhen New
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.48 times more return on investment than Shenzhen New. However, Jiangsu Jinling is 1.48 times more volatile than Shenzhen New Nanshan. It trades about 0.05 of its potential returns per unit of risk. Shenzhen New Nanshan is currently generating about -0.22 per unit of risk. If you would invest 1,264 in Jiangsu Jinling Sports on November 3, 2024 and sell it today you would earn a total of 21.00 from holding Jiangsu Jinling Sports or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Shenzhen New Nanshan
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Shenzhen New Nanshan |
Jiangsu Jinling and Shenzhen New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Shenzhen New
The main advantage of trading using opposite Jiangsu Jinling and Shenzhen New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Shenzhen New 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 New will offset losses from the drop in Shenzhen New's long position.| Jiangsu Jinling vs. Anhui Shiny Electronic | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Peoples Insurance of | Jiangsu Jinling vs. Lecron Energy Saving |
| Shenzhen New vs. ZYF Lopsking Aluminum | Shenzhen New vs. Shandong Hongchuang Aluminum | Shenzhen New vs. Sichuan Fulin Transportation | Shenzhen New vs. Anhui Transport Consulting |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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