Correlation Between Jiujiang Shanshui and Keli Sensing
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Keli Sensing Technology, you can compare the effects of market volatilities on Jiujiang Shanshui and Keli Sensing 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 Keli Sensing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Keli Sensing.
Diversification Opportunities for Jiujiang Shanshui and Keli Sensing
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Keli is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Keli Sensing Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keli Sensing Technology 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 Keli Sensing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keli Sensing Technology has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Keli Sensing go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Keli Sensing
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 18.52 times less return on investment than Keli Sensing. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 2.34 times less risky than Keli Sensing. It trades about 0.05 of its potential returns per unit of risk. Keli Sensing Technology is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 3,383 in Keli Sensing Technology on August 28, 2024 and sell it today you would earn a total of 1,738 from holding Keli Sensing Technology or generate 51.37% 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. Keli Sensing Technology
Performance |
| Timeline |
| Jiujiang Shanshui |
| Keli Sensing Technology |
Jiujiang Shanshui and Keli Sensing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Keli Sensing
The main advantage of trading using opposite Jiujiang Shanshui and Keli Sensing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Keli Sensing 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 Keli Sensing will offset losses from the drop in Keli Sensing's long position.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining | Jiujiang Shanshui vs. Rongsheng Petrochemical Co |
| Keli Sensing vs. Kweichow Moutai Co | Keli Sensing vs. Shenzhen Mindray Bio Medical | Keli Sensing vs. Jiangsu Pacific Quartz | Keli Sensing vs. G bits Network 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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