Correlation Between Jinxiandai Information and Sichuan Jinshi
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By analyzing existing cross correlation between Jinxiandai Information Industry and Sichuan Jinshi Technology, you can compare the effects of market volatilities on Jinxiandai Information and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and Sichuan Jinshi.
Diversification Opportunities for Jinxiandai Information and Sichuan Jinshi
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinxiandai and Sichuan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of Jinxiandai Information i.e., Jinxiandai Information and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between Jinxiandai Information and Sichuan Jinshi
Assuming the 90 days trading horizon Jinxiandai Information Industry is expected to under-perform the Sichuan Jinshi. In addition to that, Jinxiandai Information is 1.54 times more volatile than Sichuan Jinshi Technology. It trades about -0.32 of its total potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about -0.2 per unit of volatility. If you would invest 747.00 in Sichuan Jinshi Technology on October 14, 2024 and sell it today you would lose (82.00) from holding Sichuan Jinshi Technology or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinxiandai Information Industr vs. Sichuan Jinshi Technology
Performance |
| Timeline |
| Jinxiandai Information |
| Sichuan Jinshi Technology |
Jinxiandai Information and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinxiandai Information and Sichuan Jinshi
The main advantage of trading using opposite Jinxiandai Information and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| Jinxiandai Information vs. China Life Insurance | Jinxiandai Information vs. Cinda Securities Co | Jinxiandai Information vs. Piotech Inc A | Jinxiandai Information vs. Dongxing Sec Co |
| Sichuan Jinshi vs. Jinxiandai Information Industry | Sichuan Jinshi vs. Sublime China Information | Sichuan Jinshi vs. Digital China Information | Sichuan Jinshi vs. Soochow Suzhou Industrial |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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