Correlation Between Shaanxi Construction and Jiangsu Xinning
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By analyzing existing cross correlation between Shaanxi Construction Machinery and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Shaanxi Construction and Jiangsu Xinning 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 Shaanxi Construction with a short position of Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Construction and Jiangsu Xinning.
Diversification Opportunities for Shaanxi Construction and Jiangsu Xinning
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shaanxi and Jiangsu is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Construction Machinery and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern and Shaanxi Construction 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 Shaanxi Construction Machinery are associated (or correlated) with Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Shaanxi Construction i.e., Shaanxi Construction and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Shaanxi Construction and Jiangsu Xinning
Assuming the 90 days trading horizon Shaanxi Construction Machinery is expected to generate 1.49 times more return on investment than Jiangsu Xinning. However, Shaanxi Construction is 1.49 times more volatile than Jiangsu Xinning Modern. It trades about -0.16 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about -0.55 per unit of risk. If you would invest 355.00 in Shaanxi Construction Machinery on October 9, 2024 and sell it today you would lose (51.00) from holding Shaanxi Construction Machinery or give up 14.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Construction Machinery vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Shaanxi Construction |
| Jiangsu Xinning Modern |
Shaanxi Construction and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Construction and Jiangsu Xinning
The main advantage of trading using opposite Shaanxi Construction and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Construction position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Shaanxi Construction vs. Industrial and Commercial | Shaanxi Construction vs. Agricultural Bank of | Shaanxi Construction vs. China Construction Bank | Shaanxi Construction vs. Bank of China |
| Jiangsu Xinning vs. Hua Xia Bank | Jiangsu Xinning vs. Panda Financial Holding | Jiangsu Xinning vs. Sanbo Hospital Management | Jiangsu Xinning vs. Unisplendour Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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