Correlation Between Jiujiang Shanshui and Sinosteel Luonai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiujiang Shanshui Technology and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Jiujiang Shanshui and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Sinosteel Luonai.
Diversification Opportunities for Jiujiang Shanshui and Sinosteel Luonai
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Sinosteel is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Sinosteel Luonai
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 1.11 times more return on investment than Sinosteel Luonai. However, Jiujiang Shanshui is 1.11 times more volatile than Sinosteel Luonai Materials. It trades about 0.16 of its potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about 0.1 per unit of risk. If you would invest 1,488 in Jiujiang Shanshui Technology on November 6, 2024 and sell it today you would earn a total of 52.00 from holding Jiujiang Shanshui Technology or generate 3.49% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Jiujiang Shanshui |
| Sinosteel Luonai Mat |
Jiujiang Shanshui and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Sinosteel Luonai
The main advantage of trading using opposite Jiujiang Shanshui and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Jiujiang Shanshui vs. Sinomach Automobile Co | Jiujiang Shanshui vs. Eyebright Medical Technology | Jiujiang Shanshui vs. Anhui Jianghuai Automobile | Jiujiang Shanshui vs. Changchun Engley Automobile |
| Sinosteel Luonai vs. Runjian Communication Co | Sinosteel Luonai vs. Beijing Bewinner Communications | Sinosteel Luonai vs. Jilin Jlu Communication | Sinosteel Luonai vs. Tonghua Grape Wine |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |