Correlation Between Jiangsu Broadcasting and Emdoor Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Emdoor Information Co, you can compare the effects of market volatilities on Jiangsu Broadcasting and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Emdoor Information.
Diversification Opportunities for Jiangsu Broadcasting and Emdoor Information
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangsu and Emdoor is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Emdoor Information go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Emdoor Information
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 1.39 times less return on investment than Emdoor Information. But when comparing it to its historical volatility, Jiangsu Broadcasting Cable is 2.09 times less risky than Emdoor Information. It trades about 0.01 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,976 in Emdoor Information Co on November 7, 2024 and sell it today you would lose (1,111) from holding Emdoor Information Co or give up 18.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Emdoor Information Co
Performance |
| Timeline |
| Jiangsu Broadcasting |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Emdoor Information |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Jiangsu Broadcasting and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Emdoor Information
The main advantage of trading using opposite Jiangsu Broadcasting and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.The idea behind Jiangsu Broadcasting Cable and Emdoor Information 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.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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |