Correlation Between Jiangsu Yueda and Shandong Sanyuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yueda Investment and Shandong Sanyuan Biotechnology, you can compare the effects of market volatilities on Jiangsu Yueda and Shandong Sanyuan 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 Jiangsu Yueda with a short position of Shandong Sanyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Shandong Sanyuan.
Diversification Opportunities for Jiangsu Yueda and Shandong Sanyuan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Shandong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Shandong Sanyuan Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sanyuan Bio and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with Shandong Sanyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sanyuan Bio has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Shandong Sanyuan go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Shandong Sanyuan
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.94 times more return on investment than Shandong Sanyuan. However, Jiangsu Yueda Investment is 1.06 times less risky than Shandong Sanyuan. It trades about -0.07 of its potential returns per unit of risk. Shandong Sanyuan Biotechnology is currently generating about -0.13 per unit of risk. If you would invest 450.00 in Jiangsu Yueda Investment on October 25, 2024 and sell it today you would lose (13.00) from holding Jiangsu Yueda Investment or give up 2.89% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Yueda Investment vs. Shandong Sanyuan Biotechnology
Performance |
Timeline |
Jiangsu Yueda Investment |
Shandong Sanyuan Bio |
Jiangsu Yueda and Shandong Sanyuan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Yueda and Shandong Sanyuan
The main advantage of trading using opposite Jiangsu Yueda and Shandong Sanyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Shandong Sanyuan 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 Shandong Sanyuan will offset losses from the drop in Shandong Sanyuan's long position.Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
Shandong Sanyuan vs. Agricultural Bank of | Shandong Sanyuan vs. Postal Savings Bank | Shandong Sanyuan vs. Bank of Communications | Shandong Sanyuan vs. China Merchants Bank |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |