Correlation Between Caihong Display and Jiujiang Shanshui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Caihong Display Devices and Jiujiang Shanshui Technology, you can compare the effects of market volatilities on Caihong Display 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 Caihong Display with a short position of Jiujiang Shanshui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and Jiujiang Shanshui.
Diversification Opportunities for Caihong Display and Jiujiang Shanshui
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Caihong and Jiujiang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and Jiujiang Shanshui Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiujiang Shanshui and Caihong Display 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 Caihong Display Devices 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 Caihong Display i.e., Caihong Display and Jiujiang Shanshui go up and down completely randomly.
Pair Corralation between Caihong Display and Jiujiang Shanshui
Assuming the 90 days trading horizon Caihong Display is expected to generate 1.83 times less return on investment than Jiujiang Shanshui. In addition to that, Caihong Display is 1.04 times more volatile than Jiujiang Shanshui Technology. It trades about 0.01 of its total potential returns per unit of risk. Jiujiang Shanshui Technology is currently generating about 0.02 per unit of volatility. If you would invest 1,579 in Jiujiang Shanshui Technology on August 31, 2024 and sell it today you would earn a total of 51.00 from holding Jiujiang Shanshui Technology or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. Jiujiang Shanshui Technology
Performance |
| Timeline |
| Caihong Display Devices |
| Jiujiang Shanshui |
Caihong Display and Jiujiang Shanshui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and Jiujiang Shanshui
The main advantage of trading using opposite Caihong Display and Jiujiang Shanshui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display 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.| Caihong Display vs. Guangzhou Boji Medical | Caihong Display vs. Touchstone International Medical | Caihong Display vs. CICC Fund Management | Caihong Display vs. CareRay Digital Medical |
| Jiujiang Shanshui vs. Chengdu Xinzhu RoadBridge | Jiujiang Shanshui vs. Dazhong Transportation Group | Jiujiang Shanshui vs. Xinjiang Beixin RoadBridge | Jiujiang Shanshui vs. Shaanxi Broadcast TV |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |