Correlation Between Jiangsu Yueda and Shandong Iron
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Shandong Iron and, you can compare the effects of market volatilities on Jiangsu Yueda and Shandong Iron 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 Iron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Shandong Iron.
Diversification Opportunities for Jiangsu Yueda and Shandong Iron
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Shandong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Shandong Iron and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Iron 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 Iron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Iron has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Shandong Iron go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Shandong Iron
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 1.43 times more return on investment than Shandong Iron. However, Jiangsu Yueda is 1.43 times more volatile than Shandong Iron and. It trades about -0.28 of its potential returns per unit of risk. Shandong Iron and is currently generating about -0.53 per unit of risk. If you would invest 488.00 in Jiangsu Yueda Investment on October 14, 2024 and sell it today you would lose (67.00) from holding Jiangsu Yueda Investment or give up 13.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Shandong Iron and
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Shandong Iron |
Jiangsu Yueda and Shandong Iron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Shandong Iron
The main advantage of trading using opposite Jiangsu Yueda and Shandong Iron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Shandong Iron 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 Iron will offset losses from the drop in Shandong Iron's long position.| Jiangsu Yueda vs. Zhonghong Pulin Medical | Jiangsu Yueda vs. Medprin Regenerative Medical | Jiangsu Yueda vs. Quectel Wireless Solutions | Jiangsu Yueda vs. Hengkang Medical Group |
| Shandong Iron vs. Tieling Newcity Investment | Shandong Iron vs. Jiangsu Yueda Investment | Shandong Iron vs. JCHX Mining Management | Shandong Iron vs. Chahua Modern Housewares |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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