Correlation Between Jiujiang Shanshui and Shengtak New
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Shengtak New Material, you can compare the effects of market volatilities on Jiujiang Shanshui and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Shengtak New.
Diversification Opportunities for Jiujiang Shanshui and Shengtak New
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiujiang and Shengtak is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Shengtak New go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Shengtak New
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Shengtak New. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.01 times less risky than Shengtak New. The stock trades about -0.2 of its potential returns per unit of risk. The Shengtak New Material is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,157 in Shengtak New Material on October 18, 2024 and sell it today you would earn a total of 76.00 from holding Shengtak New Material or generate 2.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Shengtak New Material
Performance |
| Timeline |
| Jiujiang Shanshui |
| Shengtak New Material |
Jiujiang Shanshui and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Shengtak New
The main advantage of trading using opposite Jiujiang Shanshui and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New's long position.| Jiujiang Shanshui vs. Nanjing Putian Telecommunications | Jiujiang Shanshui vs. Time Publishing and | Jiujiang Shanshui vs. Xinhua Winshare Publishing | Jiujiang Shanshui vs. Ningbo Fangzheng Automobile |
| Shengtak New vs. Wonders Information | Shengtak New vs. Shenzhen SDG Information | Shengtak New vs. Thinkon Semiconductor Jinzhou | Shengtak New vs. Sharetronic Data 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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