Correlation Between Jiangsu Broadcasting and China Everbright
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and China Everbright Bank, you can compare the effects of market volatilities on Jiangsu Broadcasting and China Everbright 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 China Everbright. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and China Everbright.
Diversification Opportunities for Jiangsu Broadcasting and China Everbright
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and China is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and China Everbright Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Everbright Bank 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 China Everbright. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Everbright Bank has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and China Everbright go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and China Everbright
Assuming the 90 days trading horizon Jiangsu Broadcasting is expected to generate 2.4 times less return on investment than China Everbright. In addition to that, Jiangsu Broadcasting is 1.34 times more volatile than China Everbright Bank. It trades about 0.02 of its total potential returns per unit of risk. China Everbright Bank is currently generating about 0.07 per unit of volatility. If you would invest 288.00 in China Everbright Bank on September 4, 2024 and sell it today you would earn a total of 72.00 from holding China Everbright Bank or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.58% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. China Everbright Bank
Performance |
| Timeline |
| Jiangsu Broadcasting |
| China Everbright Bank |
Jiangsu Broadcasting and China Everbright Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and China Everbright
The main advantage of trading using opposite Jiangsu Broadcasting and China Everbright positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, China Everbright 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 China Everbright will offset losses from the drop in China Everbright's long position.| Jiangsu Broadcasting vs. Jinling Hotel Corp | Jiangsu Broadcasting vs. Jiugui Liquor Co | Jiangsu Broadcasting vs. Fujian Longzhou Transportation | Jiangsu Broadcasting vs. Hubeiyichang Transportation Group |
| China Everbright vs. Iat Automobile Technology | China Everbright vs. Haima Automobile Group | China Everbright vs. Huasi Agricultural Development | China Everbright vs. Allied Machinery Co |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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