Correlation Between Shaanxi Broadcast and Jilin Chemical
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By analyzing existing cross correlation between Shaanxi Broadcast TV and Jilin Chemical Fibre, you can compare the effects of market volatilities on Shaanxi Broadcast and Jilin Chemical 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 Shaanxi Broadcast with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Broadcast and Jilin Chemical.
Diversification Opportunities for Shaanxi Broadcast and Jilin Chemical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Jilin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Broadcast TV and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Shaanxi Broadcast 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 Shaanxi Broadcast TV are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Shaanxi Broadcast i.e., Shaanxi Broadcast and Jilin Chemical go up and down completely randomly.
Pair Corralation between Shaanxi Broadcast and Jilin Chemical
Assuming the 90 days trading horizon Shaanxi Broadcast TV is expected to generate 1.16 times more return on investment than Jilin Chemical. However, Shaanxi Broadcast is 1.16 times more volatile than Jilin Chemical Fibre. It trades about 0.28 of its potential returns per unit of risk. Jilin Chemical Fibre is currently generating about 0.04 per unit of risk. If you would invest 233.00 in Shaanxi Broadcast TV on November 5, 2024 and sell it today you would earn a total of 20.00 from holding Shaanxi Broadcast TV or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Broadcast TV vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Shaanxi Broadcast |
| Jilin Chemical Fibre |
Shaanxi Broadcast and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Broadcast and Jilin Chemical
The main advantage of trading using opposite Shaanxi Broadcast and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Broadcast position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Shaanxi Broadcast vs. China Sports Industry | Shaanxi Broadcast vs. Everdisplay Optronics Shanghai | Shaanxi Broadcast vs. Hygon Information Technology | Shaanxi Broadcast vs. Biwin Storage Technology |
| Jilin Chemical vs. Jiangyin Jianghua Microelectronics | Jilin Chemical vs. Epoxy Base Electronic | Jilin Chemical vs. Sportsoul Co Ltd | Jilin Chemical vs. Dongguan Tarry Electronics |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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