Correlation Between Jiangsu Jinling and Sichuan Jinshi
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Jiangsu Jinling and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Sichuan Jinshi.
Diversification Opportunities for Jiangsu Jinling and Sichuan Jinshi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Sichuan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Sichuan Jinshi
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.87 times more return on investment than Sichuan Jinshi. However, Jiangsu Jinling Sports is 1.15 times less risky than Sichuan Jinshi. It trades about 0.05 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.08 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Sichuan Jinshi Technology |
Jiangsu Jinling and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Sichuan Jinshi
The main advantage of trading using opposite Jiangsu Jinling and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Jiangsu Jinling vs. Huatian Hotel Group | Jiangsu Jinling vs. BTG Hotels Group | Jiangsu Jinling vs. Wonders Information | Jiangsu Jinling vs. Longmaster Information Tech |
| Sichuan Jinshi vs. Suzhou Oriental Semiconductor | Sichuan Jinshi vs. Thinkon Semiconductor Jinzhou | Sichuan Jinshi vs. Will Semiconductor Co | Sichuan Jinshi vs. Tieling Newcity Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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