Correlation Between Shanghai Jinfeng and Jiangsu Xinri
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Shanghai Jinfeng and Jiangsu Xinri 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 Shanghai Jinfeng with a short position of Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Jiangsu Xinri.
Diversification Opportunities for Shanghai Jinfeng and Jiangsu Xinri
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Jiangsu Xinri
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 0.93 times more return on investment than Jiangsu Xinri. However, Shanghai Jinfeng Wine is 1.08 times less risky than Jiangsu Xinri. It trades about -0.02 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.04 per unit of risk. If you would invest 766.00 in Shanghai Jinfeng Wine on October 25, 2024 and sell it today you would lose (237.00) from holding Shanghai Jinfeng Wine or give up 30.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Jiangsu Xinri E |
Shanghai Jinfeng and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Jiangsu Xinri
The main advantage of trading using opposite Shanghai Jinfeng and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Jiangsu Xinri 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 Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Shanghai Jinfeng vs. Agricultural Bank of | Shanghai Jinfeng vs. Postal Savings Bank | Shanghai Jinfeng vs. Bank of Communications | Shanghai Jinfeng vs. China Merchants Bank |
| Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. Gansu Jiu Steel | Jiangsu Xinri vs. Ming Yang Smart | Jiangsu Xinri vs. Aba Chemicals Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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