Correlation Between Jiangsu Broadcasting and FSPG Hi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Broadcasting Cable and FSPG Hi Tech Co, you can compare the effects of market volatilities on Jiangsu Broadcasting and FSPG Hi 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 Broadcasting with a short position of FSPG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and FSPG Hi.
Diversification Opportunities for Jiangsu Broadcasting and FSPG Hi
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and FSPG is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and FSPG Hi Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FSPG Hi Tech and Jiangsu Broadcasting 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 Broadcasting Cable are associated (or correlated) with FSPG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FSPG Hi Tech has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and FSPG Hi go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and FSPG Hi
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to under-perform the FSPG Hi. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Broadcasting Cable is 1.45 times less risky than FSPG Hi. The stock trades about -0.23 of its potential returns per unit of risk. The FSPG Hi Tech Co is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 615.00 in FSPG Hi Tech Co on October 28, 2024 and sell it today you would lose (42.00) from holding FSPG Hi Tech Co or give up 6.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. FSPG Hi Tech Co
Performance |
| Timeline |
| Jiangsu Broadcasting |
| FSPG Hi Tech |
Jiangsu Broadcasting and FSPG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and FSPG Hi
The main advantage of trading using opposite Jiangsu Broadcasting and FSPG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, FSPG Hi 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 FSPG Hi will offset losses from the drop in FSPG Hi's long position.The idea behind Jiangsu Broadcasting Cable and FSPG Hi Tech Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| FSPG Hi vs. Glodon Software Co | FSPG Hi vs. Shenzhen Noposion Agrochemicals | FSPG Hi vs. Shanghai Xinhua Media | FSPG Hi vs. China National Software |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |