Correlation Between Jiujiang Shanshui and Zoy Home
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Zoy Home Furnishing, you can compare the effects of market volatilities on Jiujiang Shanshui and Zoy Home 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 Zoy Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Zoy Home.
Diversification Opportunities for Jiujiang Shanshui and Zoy Home
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiujiang and Zoy is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Zoy Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoy Home Furnishing 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 Zoy Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoy Home Furnishing has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Zoy Home go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Zoy Home
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to under-perform the Zoy Home. But the stock apears to be less risky and, when comparing its historical volatility, Jiujiang Shanshui Technology is 1.77 times less risky than Zoy Home. The stock trades about -0.06 of its potential returns per unit of risk. The Zoy Home Furnishing is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,087 in Zoy Home Furnishing on November 1, 2024 and sell it today you would earn a total of 47.00 from holding Zoy Home Furnishing or generate 4.32% 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. Zoy Home Furnishing
Performance |
| Timeline |
| Jiujiang Shanshui |
| Zoy Home Furnishing |
Jiujiang Shanshui and Zoy Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Zoy Home
The main advantage of trading using opposite Jiujiang Shanshui and Zoy Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Zoy Home 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 Zoy Home will offset losses from the drop in Zoy Home's long position.| Jiujiang Shanshui vs. Zijin Mining Group | Jiujiang Shanshui vs. Wanhua Chemical Group | Jiujiang Shanshui vs. Baoshan Iron Steel | Jiujiang Shanshui vs. Shandong Gold Mining |
| Zoy Home vs. Jiujiang Shanshui Technology | Zoy Home vs. Heilongjiang Transport Development | Zoy Home vs. Shuhua Sports Co | Zoy Home vs. Shenzhen Urban Transport |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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