Correlation Between Jiujiang Shanshui and Western Superconducting
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Western Superconducting Tech, you can compare the effects of market volatilities on Jiujiang Shanshui and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Western Superconducting.
Diversification Opportunities for Jiujiang Shanshui and Western Superconducting
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and Western is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Western Superconducting go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Western Superconducting
Assuming the 90 days trading horizon Jiujiang Shanshui Technology is expected to generate 0.94 times more return on investment than Western Superconducting. However, Jiujiang Shanshui Technology is 1.06 times less risky than Western Superconducting. It trades about 0.08 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about -0.17 per unit of risk. If you would invest 1,630 in Jiujiang Shanshui Technology on September 13, 2024 and sell it today you would earn a total of 57.00 from holding Jiujiang Shanshui Technology or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Western Superconducting Tech
Performance |
| Timeline |
| Jiujiang Shanshui |
| Western Superconducting |
Jiujiang Shanshui and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Western Superconducting
The main advantage of trading using opposite Jiujiang Shanshui and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting'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 |
| Western Superconducting vs. Ming Yang Smart | Western Superconducting vs. 159681 | Western Superconducting vs. 159005 | Western Superconducting vs. Loctek Ergonomic 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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