Correlation Between Jiangsu Broadcasting and Zhengping RoadBridge
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Jiangsu Broadcasting and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Zhengping RoadBridge.
Diversification Opportunities for Jiangsu Broadcasting and Zhengping RoadBridge
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Zhengping is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Zhengping RoadBridge
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Broadcasting Cable is 2.04 times less risky than Zhengping RoadBridge. The stock trades about -0.11 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 313.00 in Zhengping RoadBridge Constr on October 11, 2024 and sell it today you would earn a total of 56.00 from holding Zhengping RoadBridge Constr or generate 17.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Zhengping RoadBridge |
Jiangsu Broadcasting and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Zhengping RoadBridge
The main advantage of trading using opposite Jiangsu Broadcasting and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge'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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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