Correlation Between Beijing Topnew and Jiujiang Shanshui
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By analyzing existing cross correlation between Beijing Topnew Info and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Beijing Topnew and Jiujiang Shanshui 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 Beijing Topnew with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Topnew and Jiujiang Shanshui.
Diversification Opportunities for Beijing Topnew and Jiujiang Shanshui
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Jiujiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Topnew Info and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Beijing Topnew 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 Beijing Topnew Info are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Beijing Topnew i.e., Beijing Topnew and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Beijing Topnew and Jiujiang Shanshui
Assuming the 90 days trading horizon Beijing Topnew Info is expected to generate 1.7 times more return on investment than Jiujiang Shanshui. However, Beijing Topnew is 1.7 times more volatile than Jiujiang Shanshui Technology. It trades about 0.02 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.01 per unit of risk. If you would invest 3,707 in Beijing Topnew Info on September 2, 2024 and sell it today you would lose (189.00) from holding Beijing Topnew Info or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Topnew Info vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Beijing Topnew Info |
| Jiujiang Shanshui |
Beijing Topnew and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Topnew and Jiujiang Shanshui
The main advantage of trading using opposite Beijing Topnew and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Topnew position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Beijing Topnew vs. Jiujiang Shanshui Technology | Beijing Topnew vs. Jiangsu GDK Biotechnology | Beijing Topnew vs. Niutech Environment Technology | Beijing Topnew vs. Kuang Chi Technologies |
| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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