Correlation Between Chengdu B-ray and Jiangsu Pacific
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By analyzing existing cross correlation between Chengdu B ray Media and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Chengdu B-ray and Jiangsu Pacific 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 Chengdu B-ray with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B-ray and Jiangsu Pacific.
Diversification Opportunities for Chengdu B-ray and Jiangsu Pacific
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Jiangsu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Chengdu B-ray 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 Chengdu B ray Media are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Chengdu B-ray i.e., Chengdu B-ray and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Chengdu B-ray and Jiangsu Pacific
Assuming the 90 days trading horizon Chengdu B ray Media is expected to generate 1.18 times more return on investment than Jiangsu Pacific. However, Chengdu B-ray is 1.18 times more volatile than Jiangsu Pacific Quartz. It trades about 0.07 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about 0.01 per unit of risk. If you would invest 364.00 in Chengdu B ray Media on November 3, 2024 and sell it today you would earn a total of 85.00 from holding Chengdu B ray Media or generate 23.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Chengdu B ray |
| Jiangsu Pacific Quartz |
Chengdu B-ray and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B-ray and Jiangsu Pacific
The main advantage of trading using opposite Chengdu B-ray and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B-ray position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Chengdu B-ray vs. PetroChina Co Ltd | Chengdu B-ray vs. Industrial and Commercial | Chengdu B-ray vs. China Petroleum Chemical | Chengdu B-ray vs. China Construction Bank |
| Jiangsu Pacific vs. Shandong Intco Medical | Jiangsu Pacific vs. Union Semiconductor Co | Jiangsu Pacific vs. Winner Medical Co | Jiangsu Pacific vs. Chison Medical Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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