Correlation Between Jiangsu Jinling and Healthcare
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Healthcare Co, you can compare the effects of market volatilities on Jiangsu Jinling and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Healthcare.
Diversification Opportunities for Jiangsu Jinling and Healthcare
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Healthcare is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Healthcare go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Healthcare
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.35 times more return on investment than Healthcare. However, Jiangsu Jinling is 1.35 times more volatile than Healthcare Co. It trades about -0.03 of its potential returns per unit of risk. Healthcare Co is currently generating about -0.05 per unit of risk. If you would invest 1,988 in Jiangsu Jinling Sports on August 26, 2024 and sell it today you would lose (627.00) from holding Jiangsu Jinling Sports or give up 31.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Healthcare Co
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Healthcare |
Jiangsu Jinling and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Healthcare
The main advantage of trading using opposite Jiangsu Jinling and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.| Jiangsu Jinling vs. Shenzhen MYS Environmental | Jiangsu Jinling vs. AVIC Fund Management | Jiangsu Jinling vs. Shenzhen Bingchuan Network | Jiangsu Jinling vs. Penghua Shenzhen Energy |
| Healthcare vs. Hangzhou Coco Healthcare | Healthcare vs. Shenzhen Kexin Communication | Healthcare vs. By health | Healthcare vs. Impulse Qingdao Health |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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