Correlation Between Fujian Wanchen and Jiangsu Jinling
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By analyzing existing cross correlation between Fujian Wanchen Biotechnology and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Fujian Wanchen 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 Fujian Wanchen with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Wanchen and Jiangsu Jinling.
Diversification Opportunities for Fujian Wanchen and Jiangsu Jinling
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fujian and Jiangsu is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Wanchen Biotechnology 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 Fujian Wanchen 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 Fujian Wanchen Biotechnology 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 Fujian Wanchen i.e., Fujian Wanchen and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Fujian Wanchen and Jiangsu Jinling
Assuming the 90 days trading horizon Fujian Wanchen Biotechnology is expected to generate 1.36 times more return on investment than Jiangsu Jinling. However, Fujian Wanchen is 1.36 times more volatile than Jiangsu Jinling Sports. It trades about 0.12 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 1,285 in Fujian Wanchen Biotechnology on October 28, 2024 and sell it today you would earn a total of 8,794 from holding Fujian Wanchen Biotechnology or generate 684.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Wanchen Biotechnology vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Fujian Wanchen Biote |
| Jiangsu Jinling Sports |
Fujian Wanchen and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Wanchen and Jiangsu Jinling
The main advantage of trading using opposite Fujian Wanchen and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Wanchen 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.| Fujian Wanchen vs. Industrial and Commercial | Fujian Wanchen vs. Kweichow Moutai Co | Fujian Wanchen vs. Agricultural Bank of | Fujian Wanchen vs. China Mobile Limited |
| Jiangsu Jinling vs. Ming Yang Smart | Jiangsu Jinling vs. 159681 | Jiangsu Jinling vs. 159005 | Jiangsu Jinling vs. Loctek Ergonomic Technology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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