Correlation Between Shenzhen and Jiangsu Jinling
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By analyzing existing cross correlation between Shenzhen AV Display Co and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Shenzhen and Jiangsu Jinling 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 Shenzhen with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Jiangsu Jinling.
Diversification Opportunities for Shenzhen and Jiangsu Jinling
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Jiangsu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Shenzhen 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 Shenzhen AV Display Co are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Shenzhen i.e., Shenzhen and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Shenzhen and Jiangsu Jinling
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.16 times more return on investment than Jiangsu Jinling. However, Shenzhen is 1.16 times more volatile than Jiangsu Jinling Sports. It trades about 0.02 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.02 per unit of risk. If you would invest 2,978 in Shenzhen AV Display Co on October 27, 2024 and sell it today you would earn a total of 206.00 from holding Shenzhen AV Display Co or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Shenzhen AV Display |
| Jiangsu Jinling Sports |
Shenzhen and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Jiangsu Jinling
The main advantage of trading using opposite Shenzhen and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Shenzhen vs. Yindu Kitchen Equipment | Shenzhen vs. Beijing Bewinner Communications | Shenzhen vs. Bank of Communications | Shenzhen vs. Aba Chemicals Corp |
| Jiangsu Jinling vs. Iat Automobile Technology | Jiangsu Jinling vs. Bonree Data Technology | Jiangsu Jinling vs. Emdoor Information Co | Jiangsu Jinling vs. East Money Information |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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