Correlation Between Jiangsu Jinling and Suzhou Mingzhi
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Jiangsu Jinling and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Suzhou Mingzhi.
Diversification Opportunities for Jiangsu Jinling and Suzhou Mingzhi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Suzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi Technology 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Suzhou Mingzhi
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to under-perform the Suzhou Mingzhi. In addition to that, Jiangsu Jinling is 1.09 times more volatile than Suzhou Mingzhi Technology. It trades about -0.1 of its total potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.1 per unit of volatility. If you would invest 1,771 in Suzhou Mingzhi Technology on October 25, 2024 and sell it today you would earn a total of 84.00 from holding Suzhou Mingzhi Technology or generate 4.74% 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. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Suzhou Mingzhi Technology |
Jiangsu Jinling and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Suzhou Mingzhi
The main advantage of trading using opposite Jiangsu Jinling and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. Gansu Jiu Steel | Jiangsu Jinling vs. Ming Yang Smart | Jiangsu Jinling vs. Aba Chemicals Corp |
| Suzhou Mingzhi vs. Kweichow Moutai Co | Suzhou Mingzhi vs. Contemporary Amperex Technology | Suzhou Mingzhi vs. Beijing Roborock Technology | Suzhou Mingzhi vs. BYD Co Ltd |
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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