Correlation Between Jiangsu Yueda and Changjiang Jinggong
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Jiangsu Yueda and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Changjiang Jinggong.
Diversification Opportunities for Jiangsu Yueda and Changjiang Jinggong
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Changjiang is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong Steel 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Changjiang Jinggong
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 1.63 times more return on investment than Changjiang Jinggong. However, Jiangsu Yueda is 1.63 times more volatile than Changjiang Jinggong Steel. It trades about 0.02 of its potential returns per unit of risk. Changjiang Jinggong Steel is currently generating about -0.03 per unit of risk. If you would invest 458.00 in Jiangsu Yueda Investment on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Jiangsu Yueda Investment or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Changjiang Jinggong Steel
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Changjiang Jinggong Steel |
Jiangsu Yueda and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Changjiang Jinggong
The main advantage of trading using opposite Jiangsu Yueda and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.| Jiangsu Yueda vs. Cultural Investment Holdings | Jiangsu Yueda vs. Gome Telecom Equipment | Jiangsu Yueda vs. Bus Online Co | Jiangsu Yueda vs. Holitech Technology Co |
| Changjiang Jinggong vs. China Life Insurance | Changjiang Jinggong vs. HaiXin Foods Co | Changjiang Jinggong vs. Ping An Insurance | Changjiang Jinggong vs. China Publishing Media |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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