Correlation Between Jiangsu Broadcasting and Guangzhou Boji
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Guangzhou Boji Medical, you can compare the effects of market volatilities on Jiangsu Broadcasting and Guangzhou Boji 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 Guangzhou Boji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Guangzhou Boji.
Diversification Opportunities for Jiangsu Broadcasting and Guangzhou Boji
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Guangzhou is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Guangzhou Boji Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Boji Medical 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 Guangzhou Boji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Boji Medical has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Guangzhou Boji go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Guangzhou Boji
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 2.06 times less return on investment than Guangzhou Boji. But when comparing it to its historical volatility, Jiangsu Broadcasting Cable is 1.78 times less risky than Guangzhou Boji. It trades about 0.01 of its potential returns per unit of risk. Guangzhou Boji Medical is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 808.00 in Guangzhou Boji Medical on October 16, 2024 and sell it today you would lose (11.00) from holding Guangzhou Boji Medical or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Guangzhou Boji Medical
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Guangzhou Boji Medical |
Jiangsu Broadcasting and Guangzhou Boji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Guangzhou Boji
The main advantage of trading using opposite Jiangsu Broadcasting and Guangzhou Boji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Guangzhou Boji 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 Guangzhou Boji will offset losses from the drop in Guangzhou Boji's long position.| Jiangsu Broadcasting vs. Ye Chiu Metal | Jiangsu Broadcasting vs. Ningbo Jintian Copper | Jiangsu Broadcasting vs. Sino Platinum Metals Co | Jiangsu Broadcasting vs. Zhejiang JIULI Hi tech |
| Guangzhou Boji vs. Jiangsu Broadcasting Cable | Guangzhou Boji vs. Road Environment Technology | Guangzhou Boji vs. Hunan TV Broadcast | Guangzhou Boji vs. Zhongshan Broad Ocean Motor |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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