Correlation Between Jiangsu Jinling and Shandong Longda
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Shandong Longda Meat, you can compare the effects of market volatilities on Jiangsu Jinling and Shandong Longda 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 Shandong Longda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Shandong Longda.
Diversification Opportunities for Jiangsu Jinling and Shandong Longda
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jiangsu and Shandong is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Shandong Longda Meat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Longda Meat 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 Shandong Longda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Longda Meat has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Shandong Longda go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Shandong Longda
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Shandong Longda. In addition to that, Jiangsu Jinling is 1.88 times more volatile than Shandong Longda Meat. It trades about -0.25 of its total potential returns per unit of risk. Shandong Longda Meat is currently generating about -0.21 per unit of volatility. If you would invest 763.00 in Shandong Longda Meat on October 12, 2024 and sell it today you would lose (83.00) from holding Shandong Longda Meat or give up 10.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Shandong Longda Meat
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Shandong Longda Meat |
Jiangsu Jinling and Shandong Longda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Shandong Longda
The main advantage of trading using opposite Jiangsu Jinling and Shandong Longda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Shandong Longda 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 Shandong Longda will offset losses from the drop in Shandong Longda's long position.| Jiangsu Jinling vs. Huizhou Speed Wireless | Jiangsu Jinling vs. Semiconductor Manufacturing Intl | Jiangsu Jinling vs. Will Semiconductor Co | Jiangsu Jinling vs. Sunwave Communications Co |
| Shandong Longda vs. Dymatic Chemicals | Shandong Longda vs. Jiangsu Jinling Sports | Shandong Longda vs. Harvest Fund Management | Shandong Longda vs. Yingde Greatchem Chemicals |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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