Correlation Between Jiangsu Broadcasting and VT Industrial
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and VT Industrial Technology, you can compare the effects of market volatilities on Jiangsu Broadcasting and VT Industrial 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 VT Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and VT Industrial.
Diversification Opportunities for Jiangsu Broadcasting and VT Industrial
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and 300707 is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and VT Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VT Industrial Technology 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 VT Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VT Industrial Technology has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and VT Industrial go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and VT Industrial
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 4.41 times less return on investment than VT Industrial. But when comparing it to its historical volatility, Jiangsu Broadcasting Cable is 2.1 times less risky than VT Industrial. It trades about 0.01 of its potential returns per unit of risk. VT Industrial Technology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,365 in VT Industrial Technology on October 25, 2024 and sell it today you would earn a total of 101.00 from holding VT Industrial Technology or generate 7.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.5% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. VT Industrial Technology
Performance |
| Timeline |
| Jiangsu Broadcasting |
| VT Industrial Technology |
Jiangsu Broadcasting and VT Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and VT Industrial
The main advantage of trading using opposite Jiangsu Broadcasting and VT Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, VT Industrial 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 VT Industrial will offset losses from the drop in VT Industrial's long position.| Jiangsu Broadcasting vs. Anji Foodstuff Co | Jiangsu Broadcasting vs. V V Food | Jiangsu Broadcasting vs. Namchow Food Group | Jiangsu Broadcasting vs. Ye Chiu Metal |
| VT Industrial vs. Jiangxi Naipu Mining | VT Industrial vs. Nuode Investment Co | VT Industrial vs. Fujian Oriental Silver | VT Industrial vs. Guangdong Silvere Sci |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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