Correlation Between Jiujiang Shanshui and Sichuan Jiuyuan
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Sichuan Jiuyuan Yinhai, you can compare the effects of market volatilities on Jiujiang Shanshui and Sichuan Jiuyuan 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 Sichuan Jiuyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Sichuan Jiuyuan.
Diversification Opportunities for Jiujiang Shanshui and Sichuan Jiuyuan
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiujiang and Sichuan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Sichuan Jiuyuan Yinhai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jiuyuan Yinhai 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 Sichuan Jiuyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jiuyuan Yinhai has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Sichuan Jiuyuan go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Sichuan Jiuyuan
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.53 times more return on investment than Sichuan Jiuyuan. However, Jiujiang Shanshui Technology is 1.89 times less risky than Sichuan Jiuyuan. It trades about 0.08 of its potential returns per unit of risk. Sichuan Jiuyuan Yinhai is currently generating about -0.11 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Sichuan Jiuyuan Yinhai
Performance |
| Timeline |
| Jiujiang Shanshui |
| Sichuan Jiuyuan Yinhai |
Jiujiang Shanshui and Sichuan Jiuyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Sichuan Jiuyuan
The main advantage of trading using opposite Jiujiang Shanshui and Sichuan Jiuyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Sichuan Jiuyuan 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 Sichuan Jiuyuan will offset losses from the drop in Sichuan Jiuyuan'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 |
| Sichuan Jiuyuan vs. Southern PublishingMedia Co | Sichuan Jiuyuan vs. Qingdao Foods Co | Sichuan Jiuyuan vs. Time Publishing and | Sichuan Jiuyuan vs. JuneYao Dairy 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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