Correlation Between Jiangsu Broadcasting and Hubeiyichang Transportation
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Jiangsu Broadcasting and Hubeiyichang Transportation 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 Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Hubeiyichang Transportation.
Diversification Opportunities for Jiangsu Broadcasting and Hubeiyichang Transportation
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Hubeiyichang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation 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 Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Hubeiyichang Transportation
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 1.08 times more return on investment than Hubeiyichang Transportation. However, Jiangsu Broadcasting is 1.08 times more volatile than Hubeiyichang Transportation Group. It trades about 0.01 of its potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of risk. If you would invest 310.00 in Jiangsu Broadcasting Cable on November 5, 2024 and sell it today you would earn a total of 11.00 from holding Jiangsu Broadcasting Cable or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Hubeiyichang Transportation |
Jiangsu Broadcasting and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Hubeiyichang Transportation
The main advantage of trading using opposite Jiangsu Broadcasting and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Jiangsu Broadcasting vs. Ningbo Tech Bank Co | Jiangsu Broadcasting vs. Keda Clean Energy | Jiangsu Broadcasting vs. Qilu Bank Co | Jiangsu Broadcasting vs. Shenzhen Topway Video |
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