Correlation Between Jiangsu Jinling and Fujian Wanchen
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Fujian Wanchen Biotechnology, you can compare the effects of market volatilities on Jiangsu Jinling and Fujian Wanchen 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 Fujian Wanchen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Fujian Wanchen.
Diversification Opportunities for Jiangsu Jinling and Fujian Wanchen
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Fujian is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Fujian Wanchen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Wanchen Biote 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 Fujian Wanchen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Wanchen Biote has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Fujian Wanchen go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Fujian Wanchen
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Fujian Wanchen. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Jinling Sports is 1.37 times less risky than Fujian Wanchen. The stock trades about -0.05 of its potential returns per unit of risk. The Fujian Wanchen Biotechnology is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 7,678 in Fujian Wanchen Biotechnology on October 28, 2024 and sell it today you would earn a total of 2,401 from holding Fujian Wanchen Biotechnology or generate 31.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Fujian Wanchen Biotechnology
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Fujian Wanchen Biote |
Jiangsu Jinling and Fujian Wanchen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Fujian Wanchen
The main advantage of trading using opposite Jiangsu Jinling and Fujian Wanchen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Fujian Wanchen 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 Fujian Wanchen will offset losses from the drop in Fujian Wanchen's long position.| Jiangsu Jinling vs. Ming Yang Smart | Jiangsu Jinling vs. 159681 | Jiangsu Jinling vs. 159005 | Jiangsu Jinling vs. Loctek Ergonomic Technology |
| Fujian Wanchen vs. Industrial and Commercial | Fujian Wanchen vs. Kweichow Moutai Co | Fujian Wanchen vs. Agricultural Bank of | Fujian Wanchen vs. China Mobile Limited |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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