Correlation Between Fujian Oriental and Jiangsu Pacific
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By analyzing existing cross correlation between Fujian Oriental Silver and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Fujian Oriental and Jiangsu Pacific 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 Fujian Oriental with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Oriental and Jiangsu Pacific.
Diversification Opportunities for Fujian Oriental and Jiangsu Pacific
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fujian and Jiangsu is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Oriental Silver and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Fujian Oriental 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 Fujian Oriental Silver are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Fujian Oriental i.e., Fujian Oriental and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Fujian Oriental and Jiangsu Pacific
Assuming the 90 days trading horizon Fujian Oriental is expected to generate 4.21 times less return on investment than Jiangsu Pacific. But when comparing it to its historical volatility, Fujian Oriental Silver is 1.19 times less risky than Jiangsu Pacific. It trades about 0.04 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,625 in Jiangsu Pacific Quartz on January 5, 2025 and sell it today you would earn a total of 360.00 from holding Jiangsu Pacific Quartz or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Oriental Silver vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Fujian Oriental Silver |
| Jiangsu Pacific Quartz |
Fujian Oriental and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Oriental and Jiangsu Pacific
The main advantage of trading using opposite Fujian Oriental and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Oriental position performs unexpectedly, Jiangsu Pacific 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 Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Fujian Oriental vs. Super Dragon Engineering Plastics | Fujian Oriental vs. Earth Panda Advanced Magnetic | Fujian Oriental vs. Fuda Alloy Materials | Fujian Oriental vs. Jiangyin Haida Rubber |
| Jiangsu Pacific vs. Shaanxi Meineng Clean | Jiangsu Pacific vs. Xizi Clean Energy | Jiangsu Pacific vs. Keda Clean Energy | Jiangsu Pacific vs. Zhongshan Public Utilities |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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