Correlation Between Beijing Jiaman and Zhejiang JIULI
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By analyzing existing cross correlation between Beijing Jiaman Dress and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Beijing Jiaman and Zhejiang JIULI 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 Beijing Jiaman with a short position of Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Zhejiang JIULI.
Diversification Opportunities for Beijing Jiaman and Zhejiang JIULI
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Zhejiang is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi and Beijing Jiaman 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 Beijing Jiaman Dress are associated (or correlated) with Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Zhejiang JIULI
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Zhejiang JIULI. In addition to that, Beijing Jiaman is 1.16 times more volatile than Zhejiang JIULI Hi tech. It trades about -0.02 of its total potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about 0.0 per unit of volatility. If you would invest 2,377 in Zhejiang JIULI Hi tech on October 13, 2024 and sell it today you would lose (92.00) from holding Zhejiang JIULI Hi tech or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Zhejiang JIULI Hi |
Beijing Jiaman and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Zhejiang JIULI
The main advantage of trading using opposite Beijing Jiaman and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Beijing Jiaman vs. Jiangsu Yanghe Brewery | Beijing Jiaman vs. Jinsanjiang Silicon Material | Beijing Jiaman vs. Liaoning Dingjide Petrochemical | Beijing Jiaman vs. Henan Shuanghui Investment |
| Zhejiang JIULI vs. YiDong Electronics Technology | Zhejiang JIULI vs. Eastroc Beverage Group | Zhejiang JIULI vs. Jiangyin Jianghua Microelectronics | Zhejiang JIULI vs. Beijing Jiaman Dress |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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