Correlation Between Jiujiang Shanshui and China Securities
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and China Securities 800, you can compare the effects of market volatilities on Jiujiang Shanshui and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and China Securities.
Diversification Opportunities for Jiujiang Shanshui and China Securities
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and China is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and China Securities go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and China Securities
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the China Securities. In addition to that, Jiujiang Shanshui is 1.75 times more volatile than China Securities 800. It trades about -0.29 of its total potential returns per unit of risk. China Securities 800 is currently generating about -0.29 per unit of volatility. If you would invest 432,984 in China Securities 800 on October 12, 2024 and sell it today you would lose (27,815) from holding China Securities 800 or give up 6.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. China Securities 800
Performance |
| Timeline |
Jiujiang Shanshui and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Jiujiang Shanshui Technology
Pair trading matchups for Jiujiang Shanshui
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Jiujiang Shanshui and China Securities
The main advantage of trading using opposite Jiujiang Shanshui and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Jiujiang Shanshui vs. Jinlong Machinery Electronic | Jiujiang Shanshui vs. YiDong Electronics Technology | Jiujiang Shanshui vs. Fuzhou Rockchip Electronics | Jiujiang Shanshui vs. Tianjin Silvery Dragon |
| China Securities vs. Huatian Hotel Group | China Securities vs. Keeson Technology Corp | China Securities vs. Jiujiang Shanshui Technology | China Securities vs. Smartgiant Technology 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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