Correlation Between Jiujiang Shanshui and Zoje Resources
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Zoje Resources Investment, you can compare the effects of market volatilities on Jiujiang Shanshui and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Zoje Resources.
Diversification Opportunities for Jiujiang Shanshui and Zoje Resources
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and Zoje is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Zoje Resources go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Zoje Resources
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Zoje Resources. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.58 times less risky than Zoje Resources. The stock trades about -0.01 of its potential returns per unit of risk. The Zoje Resources Investment is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 119.00 in Zoje Resources Investment on October 12, 2024 and sell it today you would earn a total of 145.00 from holding Zoje Resources Investment or generate 121.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiujiang Shanshui Technology vs. Zoje Resources Investment
Performance |
Timeline |
Jiujiang Shanshui |
Zoje Resources Investment |
Jiujiang Shanshui and Zoje Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiujiang Shanshui and Zoje Resources
The main advantage of trading using opposite Jiujiang Shanshui and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.Jiujiang Shanshui vs. China Eastern Airlines | Jiujiang Shanshui vs. Soyea Technology Co | Jiujiang Shanshui vs. MayAir Technology Co | Jiujiang Shanshui vs. Holitech Technology Co |
Zoje Resources vs. Suzhou Oriental Semiconductor | Zoje Resources vs. Lontium Semiconductor Corp | Zoje Resources vs. StarPower Semiconductor | Zoje Resources vs. Southchip Semiconductor 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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