Correlation Between Jiangsu Broadcasting and Xinjiang Communications
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Xinjiang Communications Construction, you can compare the effects of market volatilities on Jiangsu Broadcasting and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Xinjiang Communications.
Diversification Opportunities for Jiangsu Broadcasting and Xinjiang Communications
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Xinjiang Communications
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 0.61 times more return on investment than Xinjiang Communications. However, Jiangsu Broadcasting Cable is 1.64 times less risky than Xinjiang Communications. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.0 per unit of risk. If you would invest 338.00 in Jiangsu Broadcasting Cable on September 12, 2024 and sell it today you would earn a total of 48.00 from holding Jiangsu Broadcasting Cable or generate 14.2% 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. Xinjiang Communications Constr
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Xinjiang Communications |
Jiangsu Broadcasting and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Xinjiang Communications
The main advantage of trading using opposite Jiangsu Broadcasting and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Jiangsu Broadcasting vs. Kweichow Moutai Co | Jiangsu Broadcasting vs. Shenzhen Mindray Bio Medical | Jiangsu Broadcasting vs. G bits Network Technology | Jiangsu Broadcasting vs. Beijing Roborock Technology |
| Xinjiang Communications vs. Agricultural Bank of | Xinjiang Communications vs. Industrial and Commercial | Xinjiang Communications vs. Bank of China | Xinjiang Communications vs. PetroChina Co Ltd |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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