Correlation Between Jiangsu Jinling and Jiujiang Shanshui
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Jiangsu Jinling and Jiujiang Shanshui 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 Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Jiujiang Shanshui.
Diversification Opportunities for Jiangsu Jinling and Jiujiang Shanshui
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Jiujiang is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui 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 Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Jiujiang Shanshui
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.51 times more return on investment than Jiujiang Shanshui. However, Jiangsu Jinling is 1.51 times more volatile than Jiujiang Shanshui Technology. It trades about 0.05 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.02 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Jiujiang Shanshui |
Jiangsu Jinling and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Jiujiang Shanshui
The main advantage of trading using opposite Jiangsu Jinling and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Jiangsu Jinling vs. Anhui Shiny Electronic | Jiangsu Jinling vs. Ningbo Ligong Online | Jiangsu Jinling vs. Peoples Insurance of | Jiangsu Jinling vs. Lecron Energy Saving |
| Jiujiang Shanshui vs. China Sports Industry | Jiujiang Shanshui vs. Yankershop Food Co | Jiujiang Shanshui vs. Youyou Foods Co | Jiujiang Shanshui vs. Jiajia Food Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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