Correlation Between Jiujiang Shanshui and Suzhou Mingzhi
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Suzhou Mingzhi Technology, you can compare the effects of market volatilities on Jiujiang Shanshui and Suzhou Mingzhi 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 Suzhou Mingzhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Suzhou Mingzhi.
Diversification Opportunities for Jiujiang Shanshui and Suzhou Mingzhi
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiujiang and Suzhou is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Suzhou Mingzhi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Mingzhi 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 Suzhou Mingzhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Mingzhi Technology has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Suzhou Mingzhi go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Suzhou Mingzhi
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 12.99 times less return on investment than Suzhou Mingzhi. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.34 times less risky than Suzhou Mingzhi. It trades about 0.02 of its potential returns per unit of risk. Suzhou Mingzhi Technology is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,648 in Suzhou Mingzhi Technology on November 3, 2024 and sell it today you would earn a total of 151.00 from holding Suzhou Mingzhi Technology or generate 9.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiujiang Shanshui Technology vs. Suzhou Mingzhi Technology
Performance |
| Timeline |
| Jiujiang Shanshui |
| Suzhou Mingzhi Technology |
Jiujiang Shanshui and Suzhou Mingzhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Suzhou Mingzhi
The main advantage of trading using opposite Jiujiang Shanshui and Suzhou Mingzhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Suzhou Mingzhi 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 Suzhou Mingzhi will offset losses from the drop in Suzhou Mingzhi's long position.| Jiujiang Shanshui vs. China Sports Industry | Jiujiang Shanshui vs. Yankershop Food Co | Jiujiang Shanshui vs. Youyou Foods Co | Jiujiang Shanshui vs. Jiajia Food Group |
| Suzhou Mingzhi vs. Guangzhou KingTeller Technology | Suzhou Mingzhi vs. Tianjin Ruixin Technology | Suzhou Mingzhi vs. Dhc Software Co | Suzhou Mingzhi vs. Sichuan Fulin Transportation |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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