Correlation Between Jiujiang Shanshui and Kuang Chi
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Kuang Chi Technologies, you can compare the effects of market volatilities on Jiujiang Shanshui and Kuang Chi 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 Kuang Chi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Kuang Chi.
Diversification Opportunities for Jiujiang Shanshui and Kuang Chi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and Kuang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Kuang Chi Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuang Chi Technologies 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 Kuang Chi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuang Chi Technologies has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Kuang Chi go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Kuang Chi
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.61 times more return on investment than Kuang Chi. However, Jiujiang Shanshui Technology is 1.65 times less risky than Kuang Chi. It trades about 0.08 of its potential returns per unit of risk. Kuang Chi Technologies is currently generating about -0.13 per unit of risk. If you would invest 1,634 in Jiujiang Shanshui Technology on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Jiujiang Shanshui Technology or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Kuang Chi Technologies
Performance |
| Timeline |
| Jiujiang Shanshui |
| Kuang Chi Technologies |
Jiujiang Shanshui and Kuang Chi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Kuang Chi
The main advantage of trading using opposite Jiujiang Shanshui and Kuang Chi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Kuang Chi 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 Kuang Chi will offset losses from the drop in Kuang Chi's long position.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
| Kuang Chi vs. BeiGene | Kuang Chi vs. Kweichow Moutai Co | Kuang Chi vs. Beijing Roborock Technology | Kuang Chi vs. G bits Network 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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