Correlation Between Jiangsu Broadcasting and Fujian Longzhou
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Fujian Longzhou Transportation, you can compare the effects of market volatilities on Jiangsu Broadcasting and Fujian Longzhou 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 Fujian Longzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Fujian Longzhou.
Diversification Opportunities for Jiangsu Broadcasting and Fujian Longzhou
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Fujian is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Fujian Longzhou Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Longzhou Tran 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 Fujian Longzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Longzhou Tran has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Fujian Longzhou go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Fujian Longzhou
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 0.56 times more return on investment than Fujian Longzhou. However, Jiangsu Broadcasting Cable is 1.78 times less risky than Fujian Longzhou. It trades about -0.44 of its potential returns per unit of risk. Fujian Longzhou Transportation is currently generating about -0.37 per unit of risk. If you would invest 386.00 in Jiangsu Broadcasting Cable on October 11, 2024 and sell it today you would lose (67.00) from holding Jiangsu Broadcasting Cable or give up 17.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Fujian Longzhou Transportation
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Fujian Longzhou Tran |
Jiangsu Broadcasting and Fujian Longzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Fujian Longzhou
The main advantage of trading using opposite Jiangsu Broadcasting and Fujian Longzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Fujian Longzhou 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 Fujian Longzhou will offset losses from the drop in Fujian Longzhou's long position.| Jiangsu Broadcasting vs. Guangdong Xiongsu Technology | Jiangsu Broadcasting vs. ROPEOK Technology Group | Jiangsu Broadcasting vs. 360 Security Technology | Jiangsu Broadcasting vs. Songz Automobile Air |
| Fujian Longzhou vs. AVCON Information Tech | Fujian Longzhou vs. CITIC Guoan Information | Fujian Longzhou vs. Sublime China Information | Fujian Longzhou vs. Digital China Information |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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