Correlation Between Jiangsu Jinling and Ningbo Jianan
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Ningbo Jianan Electronics, you can compare the effects of market volatilities on Jiangsu Jinling and Ningbo Jianan 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 Ningbo Jianan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Ningbo Jianan.
Diversification Opportunities for Jiangsu Jinling and Ningbo Jianan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Ningbo is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Ningbo Jianan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jianan Electronics 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 Ningbo Jianan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jianan Electronics has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Ningbo Jianan go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Ningbo Jianan
Assuming the 90 days trading horizon Jiangsu Jinling is expected to generate 1.06 times less return on investment than Ningbo Jianan. In addition to that, Jiangsu Jinling is 1.6 times more volatile than Ningbo Jianan Electronics. It trades about 0.18 of its total potential returns per unit of risk. Ningbo Jianan Electronics is currently generating about 0.31 per unit of volatility. If you would invest 2,152 in Ningbo Jianan Electronics on November 27, 2024 and sell it today you would earn a total of 180.00 from holding Ningbo Jianan Electronics or generate 8.36% 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. Ningbo Jianan Electronics
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Ningbo Jianan Electronics |
Jiangsu Jinling and Ningbo Jianan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Ningbo Jianan
The main advantage of trading using opposite Jiangsu Jinling and Ningbo Jianan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Ningbo Jianan 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 Ningbo Jianan will offset losses from the drop in Ningbo Jianan's long position.| Jiangsu Jinling vs. Shantou Wanshun Package | Jiangsu Jinling vs. Andon Health Co | Jiangsu Jinling vs. China Reform Health | Jiangsu Jinling vs. Shanghai Ziyan Foods |
| Ningbo Jianan vs. Shenzhen AV Display Co | Ningbo Jianan vs. Eastroc Beverage Group | Ningbo Jianan vs. Guangzhou Huayan Precision | Ningbo Jianan vs. Linzhou Heavy Machinery |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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