Correlation Between Sichuan Newsnet and Jiangxi Lianchuang
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By analyzing existing cross correlation between Sichuan Newsnet Media and Jiangxi Lianchuang Opto electronic, you can compare the effects of market volatilities on Sichuan Newsnet and Jiangxi Lianchuang 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 Sichuan Newsnet with a short position of Jiangxi Lianchuang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Newsnet and Jiangxi Lianchuang.
Diversification Opportunities for Sichuan Newsnet and Jiangxi Lianchuang
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sichuan and Jiangxi is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Newsnet Media and Jiangxi Lianchuang Opto electr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Lianchuang Opto and Sichuan Newsnet 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 Sichuan Newsnet Media are associated (or correlated) with Jiangxi Lianchuang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Lianchuang Opto has no effect on the direction of Sichuan Newsnet i.e., Sichuan Newsnet and Jiangxi Lianchuang go up and down completely randomly.
Pair Corralation between Sichuan Newsnet and Jiangxi Lianchuang
Assuming the 90 days trading horizon Sichuan Newsnet Media is expected to under-perform the Jiangxi Lianchuang. In addition to that, Sichuan Newsnet is 1.01 times more volatile than Jiangxi Lianchuang Opto electronic. It trades about -0.23 of its total potential returns per unit of risk. Jiangxi Lianchuang Opto electronic is currently generating about 0.06 per unit of volatility. If you would invest 4,445 in Jiangxi Lianchuang Opto electronic on October 19, 2024 and sell it today you would earn a total of 149.00 from holding Jiangxi Lianchuang Opto electronic or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Newsnet Media vs. Jiangxi Lianchuang Opto electr
Performance |
| Timeline |
| Sichuan Newsnet Media |
| Jiangxi Lianchuang Opto |
Sichuan Newsnet and Jiangxi Lianchuang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Newsnet and Jiangxi Lianchuang
The main advantage of trading using opposite Sichuan Newsnet and Jiangxi Lianchuang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Newsnet position performs unexpectedly, Jiangxi Lianchuang 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 Jiangxi Lianchuang will offset losses from the drop in Jiangxi Lianchuang's long position.| Sichuan Newsnet vs. Jiangxi Lianchuang Opto electronic | Sichuan Newsnet vs. Dongguan Tarry Electronics | Sichuan Newsnet vs. Chengdu Xinzhu RoadBridge | Sichuan Newsnet vs. Jiangyin Jianghua Microelectronics |
| Jiangxi Lianchuang vs. Haima Automobile Group | Jiangxi Lianchuang vs. Hangzhou Gisway Information | Jiangxi Lianchuang vs. Anhui Jianghuai Automobile | Jiangxi Lianchuang vs. Longmaster Information Tech |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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