Correlation Between Tonghua Grape and Jiangsu Jinling
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tonghua Grape Wine and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Tonghua Grape and Jiangsu Jinling 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 Tonghua Grape with a short position of Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Jiangsu Jinling.
Diversification Opportunities for Tonghua Grape and Jiangsu Jinling
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tonghua and Jiangsu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports and Tonghua Grape 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 Tonghua Grape Wine are associated (or correlated) with Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Tonghua Grape i.e., Tonghua Grape and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Tonghua Grape and Jiangsu Jinling
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to generate 0.62 times more return on investment than Jiangsu Jinling. However, Tonghua Grape Wine is 1.6 times less risky than Jiangsu Jinling. It trades about -0.26 of its potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about -0.28 per unit of risk. If you would invest 302.00 in Tonghua Grape Wine on October 14, 2024 and sell it today you would lose (45.00) from holding Tonghua Grape Wine or give up 14.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Jiangsu Jinling Sports
Performance |
| Timeline |
| Tonghua Grape Wine |
| Jiangsu Jinling Sports |
Tonghua Grape and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Jiangsu Jinling
The main advantage of trading using opposite Tonghua Grape and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Tonghua Grape vs. China Mobile Limited | Tonghua Grape vs. XinJiang GuoTong Pipeline | Tonghua Grape vs. Zhejiang Kingland Pipeline | Tonghua Grape vs. Shenzhen Topway Video |
| Jiangsu Jinling vs. Jiangsu Financial Leasing | Jiangsu Jinling vs. Sichuan Teway Food | Jiangsu Jinling vs. Suzhou Weizhixiang Food | Jiangsu Jinling vs. Tonghua Grape Wine |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |