Correlation Between Jiangxi Lianchuang and Shanghai Yaoji
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangxi Lianchuang Opto electronic and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Jiangxi Lianchuang and Shanghai Yaoji 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 Jiangxi Lianchuang with a short position of Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Lianchuang and Shanghai Yaoji.
Diversification Opportunities for Jiangxi Lianchuang and Shanghai Yaoji
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangxi and Shanghai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Lianchuang Opto electr and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing and Jiangxi Lianchuang 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 Jiangxi Lianchuang Opto electronic are associated (or correlated) with Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Jiangxi Lianchuang i.e., Jiangxi Lianchuang and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Jiangxi Lianchuang and Shanghai Yaoji
Assuming the 90 days trading horizon Jiangxi Lianchuang is expected to generate 1.08 times less return on investment than Shanghai Yaoji. In addition to that, Jiangxi Lianchuang is 1.1 times more volatile than Shanghai Yaoji Playing. It trades about 0.14 of its total potential returns per unit of risk. Shanghai Yaoji Playing is currently generating about 0.17 per unit of volatility. If you would invest 1,704 in Shanghai Yaoji Playing on September 21, 2024 and sell it today you would earn a total of 1,446 from holding Shanghai Yaoji Playing or generate 84.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Lianchuang Opto electr vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Jiangxi Lianchuang Opto |
| Shanghai Yaoji Playing |
Jiangxi Lianchuang and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Lianchuang and Shanghai Yaoji
The main advantage of trading using opposite Jiangxi Lianchuang and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Lianchuang position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Jiangxi Lianchuang vs. Shanghai Yaoji Playing | Jiangxi Lianchuang vs. Caihong Display Devices | Jiangxi Lianchuang vs. Shantou Wanshun Package | Jiangxi Lianchuang vs. Shanghai Ziyan Foods |
| Shanghai Yaoji vs. Lutian Machinery Co | Shanghai Yaoji vs. China Longyuan Power | Shanghai Yaoji vs. PetroChina Co Ltd | Shanghai Yaoji vs. Bank of China |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |