Correlation Between Jinxiandai Information and Shenzhen Clou
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinxiandai Information Industry and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Jinxiandai Information and Shenzhen Clou 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 Jinxiandai Information with a short position of Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Shenzhen Clou.
Diversification Opportunities for Jinxiandai Information and Shenzhen Clou
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinxiandai and Shenzhen is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics and Jinxiandai Information 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 Jinxiandai Information Industry are associated (or correlated) with Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Shenzhen Clou
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to generate 1.58 times more return on investment than Shenzhen Clou. However, Jinxiandai Information is 1.58 times more volatile than Shenzhen Clou Electronics. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Clou Electronics is currently generating about 0.03 per unit of risk. If you would invest 546.00 in Jinxiandai Information Industry on October 29, 2024 and sell it today you would earn a total of 372.00 from holding Jinxiandai Information Industry or generate 68.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Jinxiandai Information |
| Shenzhen Clou Electronics |
Jinxiandai Information and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Shenzhen Clou
The main advantage of trading using opposite Jinxiandai Information and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Jinxiandai Information vs. Bank of China | Jinxiandai Information vs. Kweichow Moutai Co | Jinxiandai Information vs. PetroChina Co Ltd | Jinxiandai Information vs. Bank of Communications |
| Shenzhen Clou vs. Jinlong Machinery Electronic | Shenzhen Clou vs. Tsingtao Brewery Co | Shenzhen Clou vs. Guangzhou Zhujiang Brewery | Shenzhen Clou vs. China World Trade |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| 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 | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |