Correlation Between Jiangsu Jinling and Zhejiang Construction
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Jinling Sports and Zhejiang Construction Investment, you can compare the effects of market volatilities on Jiangsu Jinling and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Zhejiang Construction.
Diversification Opportunities for Jiangsu Jinling and Zhejiang Construction
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zhejiang is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Zhejiang Construction
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.45 times more return on investment than Zhejiang Construction. However, Jiangsu Jinling is 1.45 times more volatile than Zhejiang Construction Investment. It trades about 0.02 of its potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.26 per unit of risk. If you would invest 1,288 in Jiangsu Jinling Sports on October 29, 2024 and sell it today you would earn a total of 2.00 from holding Jiangsu Jinling Sports or generate 0.16% 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. Zhejiang Construction Investme
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Zhejiang Construction |
Jiangsu Jinling and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Zhejiang Construction
The main advantage of trading using opposite Jiangsu Jinling and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's long position.| Jiangsu Jinling vs. Lontium Semiconductor Corp | Jiangsu Jinling vs. Hubei Tech Semiconductors | Jiangsu Jinling vs. Will Semiconductor Co | Jiangsu Jinling vs. Vats Liquor Chain |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |