Correlation Between Jiangsu Jinling and Industrial
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Industrial and Commercial, you can compare the effects of market volatilities on Jiangsu Jinling and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Industrial.
Diversification Opportunities for Jiangsu Jinling and Industrial
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Industrial is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Industrial go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Industrial
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 2.44 times more return on investment than Industrial. However, Jiangsu Jinling is 2.44 times more volatile than Industrial and Commercial. It trades about 0.2 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.24 per unit of risk. If you would invest 1,399 in Jiangsu Jinling Sports on September 15, 2024 and sell it today you would earn a total of 152.00 from holding Jiangsu Jinling Sports or generate 10.86% 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. Industrial and Commercial
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Industrial and Commercial |
Jiangsu Jinling and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Industrial
The main advantage of trading using opposite Jiangsu Jinling and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Jiangsu Jinling vs. LianChuang Electronic Technology | Jiangsu Jinling vs. Unigroup Guoxin Microelectronics | Jiangsu Jinling vs. Air China Ltd | Jiangsu Jinling vs. Dongguan Tarry Electronics |
| Industrial vs. Jiangsu Jinling Sports | Industrial vs. Cofco Biochemical Anhui | Industrial vs. China Sports Industry | Industrial vs. Guangzhou Restaurants 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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