Correlation Between Jiujiang Shanshui and Eastern Communications
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By analyzing existing cross correlation between Jiujiang Shanshui Technology and Eastern Communications Co, you can compare the effects of market volatilities on Jiujiang Shanshui and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiujiang Shanshui and Eastern Communications.
Diversification Opportunities for Jiujiang Shanshui and Eastern Communications
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiujiang and Eastern is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jiujiang Shanshui Technology and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Jiujiang Shanshui i.e., Jiujiang Shanshui and Eastern Communications go up and down completely randomly.
Pair Corralation between Jiujiang Shanshui and Eastern Communications
Assuming the 90 days trading horizon Jiujiang Shanshui is expected to generate 4.56 times less return on investment than Eastern Communications. But when comparing it to its historical volatility, Jiujiang Shanshui Technology is 1.17 times less risky than Eastern Communications. It trades about 0.01 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 42.00 in Eastern Communications Co on August 28, 2024 and sell it today you would earn a total of 1.00 from holding Eastern Communications Co or generate 2.38% 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. Eastern Communications Co
Performance |
| Timeline |
| Jiujiang Shanshui |
| Eastern Communications |
Jiujiang Shanshui and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiujiang Shanshui and Eastern Communications
The main advantage of trading using opposite Jiujiang Shanshui and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiujiang Shanshui position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' 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 |
| Eastern Communications vs. Guangdong Jinma Entertainment | Eastern Communications vs. Huaibei Mining Holdings | Eastern Communications vs. Zijin Mining Group | Eastern Communications vs. Xinjiang Baodi Mining |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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