Correlation Between Jiangsu Jinling and Dazhong Transportation
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Jinling Sports and Dazhong Transportation Group, you can compare the effects of market volatilities on Jiangsu Jinling and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Dazhong Transportation.
Diversification Opportunities for Jiangsu Jinling and Dazhong Transportation
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Dazhong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Jiangsu Jinling i.e., Jiangsu Jinling and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Dazhong Transportation
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.95 times more return on investment than Dazhong Transportation. However, Jiangsu Jinling Sports is 1.05 times less risky than Dazhong Transportation. It trades about 0.26 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.08 per unit of risk. If you would invest 1,322 in Jiangsu Jinling Sports on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Jiangsu Jinling Sports or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Dazhong Transportation Group
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Dazhong Transportation |
Jiangsu Jinling and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Dazhong Transportation
The main advantage of trading using opposite Jiangsu Jinling and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Jiangsu Jinling vs. Nanjing Putian Telecommunications | Jiangsu Jinling vs. Shenzhen Hifuture Electric | Jiangsu Jinling vs. Tianjin Realty Development | Jiangsu Jinling vs. Shenyang Huitian Thermal |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |