Correlation Between Jiujiang Shanshui and Renxin New
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Renxin New Material, you can compare the effects of market volatilities on Jiujiang Shanshui and Renxin 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 Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Renxin New.
Diversification Opportunities for Jiujiang Shanshui and Renxin New
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Renxin is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin 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 Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Renxin New go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Renxin New
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.91 times more return on investment than Renxin New. However, Jiujiang Shanshui Technology is 1.1 times less risky than Renxin New. It trades about 0.16 of its potential returns per unit of risk. Renxin New Material is currently generating about 0.11 per unit of risk. If you would invest 1,475 in Jiujiang Shanshui Technology on September 13, 2024 and sell it today you would earn a total of 189.00 from holding Jiujiang Shanshui Technology or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Renxin New Material
Performance |
| Timeline |
| Jiujiang Shanshui |
| Renxin New Material |
Jiujiang Shanshui and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Renxin New
The main advantage of trading using opposite Jiujiang Shanshui and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Renxin 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 Renxin New will offset losses from the drop in Renxin New's long position.| Jiujiang Shanshui vs. Guangzhou Ruoyuchen Information | Jiujiang Shanshui vs. ButOne Information Corp | Jiujiang Shanshui vs. Zhuhai Comleader Information | Jiujiang Shanshui vs. Yangmei Chemical Co |
| Renxin New vs. Jiujiang Shanshui Technology | Renxin New vs. Beijing Kaiwen Education | Renxin New vs. Time Publishing and | Renxin New vs. Shandong Publishing Media |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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