Correlation Between Jiujiang Shanshui and Shanghai Broadband
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Shanghai Broadband Technology, you can compare the effects of market volatilities on Jiujiang Shanshui and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Shanghai Broadband.
Diversification Opportunities for Jiujiang Shanshui and Shanghai Broadband
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and Shanghai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Shanghai Broadband
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.62 times more return on investment than Shanghai Broadband. However, Jiujiang Shanshui Technology is 1.62 times less risky than Shanghai Broadband. It trades about -0.16 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.14 per unit of risk. If you would invest 1,613 in Jiujiang Shanshui Technology on October 20, 2024 and sell it today you would lose (106.00) from holding Jiujiang Shanshui Technology or give up 6.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Jiujiang Shanshui |
| Shanghai Broadband |
Jiujiang Shanshui and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Shanghai Broadband
The main advantage of trading using opposite Jiujiang Shanshui and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Jiujiang Shanshui vs. Shuhua Sports Co | Jiujiang Shanshui vs. Beijing Mainstreets Investment | Jiujiang Shanshui vs. Anhui Transport Consulting | Jiujiang Shanshui vs. Shandong Longquan Pipeline |
| Shanghai Broadband vs. Jiujiang Shanshui Technology | Shanghai Broadband vs. Digiwin Software Co | Shanghai Broadband vs. Kuangda Technology Group | Shanghai Broadband 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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