Correlation Between Jiujiang Shanshui and Guangdong Fenghua
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Guangdong Fenghua Advanced, you can compare the effects of market volatilities on Jiujiang Shanshui and Guangdong Fenghua 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 Jiujiang Shanshui with a short position of Guangdong Fenghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Guangdong Fenghua.
Diversification Opportunities for Jiujiang Shanshui and Guangdong Fenghua
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Guangdong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Guangdong Fenghua Advanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Fenghua and Jiujiang Shanshui 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 Jiujiang Shanshui Technology are associated (or correlated) with Guangdong Fenghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Fenghua has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Guangdong Fenghua go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Guangdong Fenghua
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.94 times more return on investment than Guangdong Fenghua. However, Jiujiang Shanshui Technology is 1.07 times less risky than Guangdong Fenghua. It trades about 0.1 of its potential returns per unit of risk. Guangdong Fenghua Advanced is currently generating about -0.02 per unit of risk. If you would invest 1,591 in Jiujiang Shanshui Technology on September 4, 2024 and sell it today you would earn a total of 72.00 from holding Jiujiang Shanshui Technology or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Guangdong Fenghua Advanced
Performance |
| Timeline |
| Jiujiang Shanshui |
| Guangdong Fenghua |
Jiujiang Shanshui and Guangdong Fenghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Guangdong Fenghua
The main advantage of trading using opposite Jiujiang Shanshui and Guangdong Fenghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Guangdong Fenghua 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 Guangdong Fenghua will offset losses from the drop in Guangdong Fenghua's long position.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| Guangdong Fenghua vs. Nexchip Semiconductor Corp | Guangdong Fenghua vs. Semiconductor Manufacturing Electronics | Guangdong Fenghua vs. Hangzhou Coco Healthcare | Guangdong Fenghua vs. Everjoy Health Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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