Correlation Between Inner Mongolia and Jiujiang Shanshui
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By analyzing existing cross correlation between Inner Mongolia BaoTou and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Inner Mongolia and Jiujiang Shanshui 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 Inner Mongolia with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and Jiujiang Shanshui.
Diversification Opportunities for Inner Mongolia and Jiujiang Shanshui
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and Jiujiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Inner Mongolia 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 Inner Mongolia BaoTou are associated (or correlated) with Jiujiang Shanshui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiujiang Shanshui has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Inner Mongolia and Jiujiang Shanshui
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 0.8 times more return on investment than Jiujiang Shanshui. However, Inner Mongolia BaoTou is 1.24 times less risky than Jiujiang Shanshui. It trades about 0.05 of its potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about -0.02 per unit of risk. If you would invest 155.00 in Inner Mongolia BaoTou on August 27, 2024 and sell it today you would earn a total of 39.00 from holding Inner Mongolia BaoTou or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| Jiujiang Shanshui |
Inner Mongolia and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and Jiujiang Shanshui
The main advantage of trading using opposite Inner Mongolia and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, Jiujiang Shanshui 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 Jiujiang Shanshui will offset losses from the drop in Jiujiang Shanshui's long position.| Inner Mongolia vs. Guangdong Shenglu Telecommunication | Inner Mongolia vs. Anhui Jianghuai Automobile | Inner Mongolia vs. Sunwave Communications Co | Inner Mongolia vs. Changchun Faway Automobile |
| Jiujiang Shanshui vs. Qilu Bank Co | Jiujiang Shanshui vs. Telling Telecommunication Holding | Jiujiang Shanshui vs. HeNan Splendor Science | Jiujiang Shanshui vs. Jilin Jlu Communication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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