Correlation Between Jiujiang Shanshui and Hubei Geoway
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Hubei Geoway Investment, you can compare the effects of market volatilities on Jiujiang Shanshui and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Hubei Geoway.
Diversification Opportunities for Jiujiang Shanshui and Hubei Geoway
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiujiang and Hubei is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Hubei Geoway go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Hubei Geoway
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.5 times more return on investment than Hubei Geoway. However, Jiujiang Shanshui Technology is 2.01 times less risky than Hubei Geoway. It trades about -0.2 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.41 per unit of risk. If you would invest 1,605 in Jiujiang Shanshui Technology on October 18, 2024 and sell it today you would lose (123.00) from holding Jiujiang Shanshui Technology or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Hubei Geoway Investment
Performance |
| Timeline |
| Jiujiang Shanshui |
| Hubei Geoway Investment |
Jiujiang Shanshui and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Hubei Geoway
The main advantage of trading using opposite Jiujiang Shanshui and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway'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 |
| Hubei Geoway vs. Lootom Telcovideo Network | Hubei Geoway vs. China Asset Management | Hubei Geoway vs. Postal Savings Bank | Hubei Geoway vs. Anhui Jianghuai Automobile |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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