Correlation Between Jiujiang Shanshui and Shanghai Material
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Shanghai Material Trading, you can compare the effects of market volatilities on Jiujiang Shanshui and Shanghai Material 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 Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Shanghai Material.
Diversification Opportunities for Jiujiang Shanshui and Shanghai Material
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and Shanghai is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Shanghai Material go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Shanghai Material
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Shanghai Material. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.48 times less risky than Shanghai Material. The stock trades about -0.01 of its potential returns per unit of risk. The Shanghai Material Trading is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 811.00 in Shanghai Material Trading on October 12, 2024 and sell it today you would earn a total of 143.00 from holding Shanghai Material Trading or generate 17.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Shanghai Material Trading
Performance |
| Timeline |
| Jiujiang Shanshui |
| Shanghai Material Trading |
Jiujiang Shanshui and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Shanghai Material
The main advantage of trading using opposite Jiujiang Shanshui and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Shanghai Material 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 Material will offset losses from the drop in Shanghai Material's long position.| Jiujiang Shanshui vs. China Eastern Airlines | Jiujiang Shanshui vs. Soyea Technology Co | Jiujiang Shanshui vs. MayAir Technology Co | Jiujiang Shanshui vs. Holitech Technology Co |
| Shanghai Material vs. Ping An Insurance | Shanghai Material vs. Shenzhen Noposion Agrochemicals | Shanghai Material vs. Porton Fine Chemicals | Shanghai Material vs. Beijing Bewinner Communications |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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