Correlation Between Jiangsu Broadcasting and Dazhong Transportation
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Dazhong Transportation Group, you can compare the effects of market volatilities on Jiangsu Broadcasting and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Dazhong Transportation.
Diversification Opportunities for Jiangsu Broadcasting and Dazhong Transportation
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Dazhong is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Dazhong Transportation
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 0.96 times more return on investment than Dazhong Transportation. However, Jiangsu Broadcasting Cable is 1.04 times less risky than Dazhong Transportation. It trades about 0.01 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about -0.02 per unit of risk. If you would invest 313.00 in Jiangsu Broadcasting Cable on October 14, 2024 and sell it today you would lose (2.00) from holding Jiangsu Broadcasting Cable or give up 0.64% 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. Dazhong Transportation Group
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Dazhong Transportation |
Jiangsu Broadcasting and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Dazhong Transportation
The main advantage of trading using opposite Jiangsu Broadcasting and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Jiangsu Broadcasting vs. Jiangsu Yueda Investment | Jiangsu Broadcasting vs. Aluminum Corp of | Jiangsu Broadcasting vs. Nuode Investment Co | Jiangsu Broadcasting vs. Tongling Nonferrous Metals |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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