Correlation Between Jiangsu Yueda and Chengdu B
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Chengdu B ray Media, you can compare the effects of market volatilities on Jiangsu Yueda and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Chengdu B.
Diversification Opportunities for Jiangsu Yueda and Chengdu B
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Chengdu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and Chengdu B go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Chengdu B
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 1.41 times less return on investment than Chengdu B. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 1.7 times less risky than Chengdu B. It trades about 0.05 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Chengdu B ray Media on October 24, 2024 and sell it today you would earn a total of 20.00 from holding Chengdu B ray Media or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Chengdu B ray Media
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Chengdu B ray |
Jiangsu Yueda and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Chengdu B
The main advantage of trading using opposite Jiangsu Yueda and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B's long position.| Jiangsu Yueda vs. Sinofibers Technology Co | Jiangsu Yueda vs. Ye Chiu Metal | Jiangsu Yueda vs. Changchun UP Optotech | Jiangsu Yueda vs. Guangdong Jingyi Metal |
| Chengdu B vs. Longxing Chemical Stock | Chengdu B vs. Beijing Mainstreets Investment | Chengdu B vs. Shenzhen Centralcon Investment | Chengdu B vs. Jiangsu Yueda Investment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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