Correlation Between Changjiang Jinggong and Joincare Pharmaceutical
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By analyzing existing cross correlation between Changjiang Jinggong Steel and Joincare Pharmaceutical Group, you can compare the effects of market volatilities on Changjiang Jinggong and Joincare Pharmaceutical 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 Changjiang Jinggong with a short position of Joincare Pharmaceutical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changjiang Jinggong and Joincare Pharmaceutical.
Diversification Opportunities for Changjiang Jinggong and Joincare Pharmaceutical
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changjiang and Joincare is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Changjiang Jinggong Steel and Joincare Pharmaceutical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joincare Pharmaceutical and Changjiang Jinggong 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 Changjiang Jinggong Steel are associated (or correlated) with Joincare Pharmaceutical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joincare Pharmaceutical has no effect on the direction of Changjiang Jinggong i.e., Changjiang Jinggong and Joincare Pharmaceutical go up and down completely randomly.
Pair Corralation between Changjiang Jinggong and Joincare Pharmaceutical
Assuming the 90 days trading horizon Changjiang Jinggong Steel is expected to generate 1.03 times more return on investment than Joincare Pharmaceutical. However, Changjiang Jinggong is 1.03 times more volatile than Joincare Pharmaceutical Group. It trades about 0.11 of its potential returns per unit of risk. Joincare Pharmaceutical Group is currently generating about -0.02 per unit of risk. If you would invest 261.00 in Changjiang Jinggong Steel on September 13, 2024 and sell it today you would earn a total of 76.00 from holding Changjiang Jinggong Steel or generate 29.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.18% |
| Values | Daily Returns |
Changjiang Jinggong Steel vs. Joincare Pharmaceutical Group
Performance |
| Timeline |
| Changjiang Jinggong Steel |
| Joincare Pharmaceutical |
Changjiang Jinggong and Joincare Pharmaceutical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changjiang Jinggong and Joincare Pharmaceutical
The main advantage of trading using opposite Changjiang Jinggong and Joincare Pharmaceutical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changjiang Jinggong position performs unexpectedly, Joincare Pharmaceutical 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 Joincare Pharmaceutical will offset losses from the drop in Joincare Pharmaceutical's long position.| Changjiang Jinggong vs. Ming Yang Smart | Changjiang Jinggong vs. 159681 | Changjiang Jinggong vs. 159005 | Changjiang Jinggong vs. Loctek Ergonomic Technology |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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