Correlation Between Jiangsu Jinling and Beijing Wantai
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Beijing Wantai Biological, you can compare the effects of market volatilities on Jiangsu Jinling and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Beijing Wantai.
Diversification Opportunities for Jiangsu Jinling and Beijing Wantai
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Beijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Beijing Wantai go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Beijing Wantai
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 1.4 times more return on investment than Beijing Wantai. However, Jiangsu Jinling is 1.4 times more volatile than Beijing Wantai Biological. It trades about 0.17 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about 0.08 per unit of risk. If you would invest 1,117 in Jiangsu Jinling Sports on September 4, 2024 and sell it today you would earn a total of 406.00 from holding Jiangsu Jinling Sports or generate 36.35% 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. Beijing Wantai Biological
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Beijing Wantai Biological |
Jiangsu Jinling and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Beijing Wantai
The main advantage of trading using opposite Jiangsu Jinling and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Jiangsu Jinling vs. BeiGene | Jiangsu Jinling vs. Kweichow Moutai Co | Jiangsu Jinling vs. Beijing Roborock Technology | Jiangsu Jinling vs. G bits Network Technology |
| Beijing Wantai vs. Hubeiyichang Transportation Group | Beijing Wantai vs. Jiangsu Jinling Sports | Beijing Wantai vs. Sino Platinum Metals Co | Beijing Wantai vs. Qinghaihuading Industrial Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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