Correlation Between Jiangsu Jinling and Shanghai Material
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Shanghai Material Trading, you can compare the effects of market volatilities on Jiangsu Jinling and Shanghai Material 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 Shanghai Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Shanghai Material.
Diversification Opportunities for Jiangsu Jinling and Shanghai Material
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Shanghai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Shanghai Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Shanghai Material go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Shanghai Material
Assuming the 90 days trading horizon Jiangsu Jinling is expected to generate 2.02 times less return on investment than Shanghai Material. But when comparing it to its historical volatility, Jiangsu Jinling Sports is 1.13 times less risky than Shanghai Material. It trades about 0.06 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 840.00 in Shanghai Material Trading on September 3, 2024 and sell it today you would earn a total of 393.00 from holding Shanghai Material Trading or generate 46.79% 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. Shanghai Material Trading
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Shanghai Material Trading |
Jiangsu Jinling and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Shanghai Material
The main advantage of trading using opposite Jiangsu Jinling and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Shanghai Material 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 Shanghai Material will offset losses from the drop in Shanghai Material's long position.| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
| Shanghai Material vs. Ye Chiu Metal | Shanghai Material vs. Jiangsu Jinling Sports | Shanghai Material vs. Xinjiang Baodi Mining | Shanghai Material vs. Hengli Industrial Development |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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