Correlation Between Jiangsu Broadcasting and Piotech
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Piotech Inc A, you can compare the effects of market volatilities on Jiangsu Broadcasting and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Piotech.
Diversification Opportunities for Jiangsu Broadcasting and Piotech
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Piotech is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Piotech go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Piotech
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 0.68 times more return on investment than Piotech. However, Jiangsu Broadcasting Cable is 1.48 times less risky than Piotech. It trades about -0.23 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.2 per unit of risk. If you would invest 348.00 in Jiangsu Broadcasting Cable on October 28, 2024 and sell it today you would lose (24.00) from holding Jiangsu Broadcasting Cable or give up 6.9% 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. Piotech Inc A
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Piotech Inc A |
Jiangsu Broadcasting and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Piotech
The main advantage of trading using opposite Jiangsu Broadcasting and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.The idea behind Jiangsu Broadcasting Cable and Piotech Inc A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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