Correlation Between Jiangsu Broadcasting and Suzhou Oriental
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Jiangsu Broadcasting and Suzhou Oriental 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 Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Suzhou Oriental.
Diversification Opportunities for Jiangsu Broadcasting and Suzhou Oriental
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Suzhou is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi 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 Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Suzhou Oriental go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Suzhou Oriental
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 0.5 times more return on investment than Suzhou Oriental. However, Jiangsu Broadcasting Cable is 2.02 times less risky than Suzhou Oriental. It trades about -0.28 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about -0.25 per unit of risk. If you would invest 344.00 in Jiangsu Broadcasting Cable on October 26, 2024 and sell it today you would lose (27.00) from holding Jiangsu Broadcasting Cable or give up 7.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Suzhou Oriental Semiconductor
Performance |
Timeline |
Jiangsu Broadcasting |
Suzhou Oriental Semi |
Jiangsu Broadcasting and Suzhou Oriental Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiangsu Broadcasting and Suzhou Oriental
The main advantage of trading using opposite Jiangsu Broadcasting and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Suzhou Oriental 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 Suzhou Oriental will offset losses from the drop in Suzhou Oriental's long position.Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting vs. Industrial and Commercial | Jiangsu Broadcasting vs. Bank of China | Jiangsu Broadcasting vs. China Construction Bank |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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