Correlation Between Jiangsu Jinling and Shenzhen Aisidi
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Shenzhen Aisidi Co, you can compare the effects of market volatilities on Jiangsu Jinling and Shenzhen Aisidi 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 Aisidi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Shenzhen Aisidi.
Diversification Opportunities for Jiangsu Jinling and Shenzhen Aisidi
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Shenzhen is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Shenzhen Aisidi Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Aisidi 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 Aisidi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Aisidi has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Shenzhen Aisidi go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Shenzhen Aisidi
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Shenzhen Aisidi. In addition to that, Jiangsu Jinling is 1.12 times more volatile than Shenzhen Aisidi Co. It trades about -0.02 of its total potential returns per unit of risk. Shenzhen Aisidi Co is currently generating about 0.06 per unit of volatility. If you would invest 903.00 in Shenzhen Aisidi Co on September 3, 2024 and sell it today you would earn a total of 648.00 from holding Shenzhen Aisidi Co or generate 71.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Shenzhen Aisidi Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Shenzhen Aisidi |
Jiangsu Jinling and Shenzhen Aisidi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Shenzhen Aisidi
The main advantage of trading using opposite Jiangsu Jinling and Shenzhen Aisidi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Shenzhen Aisidi 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 Aisidi will offset losses from the drop in Shenzhen Aisidi's long position.| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
| Shenzhen Aisidi vs. Xiamen Bank Co | Shenzhen Aisidi vs. Jiangsu Financial Leasing | Shenzhen Aisidi vs. Jiangsu Jinling Sports | Shenzhen Aisidi vs. Agricultural Bank of |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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