Correlation Between Jiangsu Jinling and Zhengping RoadBridge
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Jiangsu Jinling and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Zhengping RoadBridge.
Diversification Opportunities for Jiangsu Jinling and Zhengping RoadBridge
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiangsu and Zhengping is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Zhengping RoadBridge
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.7 times more return on investment than Zhengping RoadBridge. However, Jiangsu Jinling Sports is 1.42 times less risky than Zhengping RoadBridge. It trades about 0.24 of its potential returns per unit of risk. Zhengping RoadBridge Constr is currently generating about -0.01 per unit of risk. If you would invest 1,180 in Jiangsu Jinling Sports on November 7, 2024 and sell it today you would earn a total of 105.00 from holding Jiangsu Jinling Sports or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Jiangsu Jinling Sports |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Zhengping RoadBridge |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Jiangsu Jinling and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Zhengping RoadBridge
The main advantage of trading using opposite Jiangsu Jinling and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.The idea behind Jiangsu Jinling Sports and Zhengping RoadBridge Constr pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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